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Basic Question 1 of 4

Which of the following factors is more likely to be considered in a top-down approach than in a bottom-up approach?

A. Company-specific risk
B. Market risk premium
C. Cost of debt
D. Country risk premium

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Colin Sampaleanu

Colin Sampaleanu

Learning Outcome Statements

explain top-down and bottom-up factors that impact the cost of capital;

CFA® 2025 Level II Curriculum, Volume 3, Module 18.