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Basic Question 3 of 4
What is a potential advantage of the bottom-up approach in estimating the cost of capital?
A. It captures macroeconomic trends.
B. It provides a holistic view of the industry.
C. It considers company-specific risk factors.
D. It relies on market consensus.
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I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz
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.