Why is the computation of cost of capital likely to be higher under the Fama-French model than the CAPM?
A) The Fama-French model does not use the difference in the return on a portfolio of small.
B) The Fama-French model does not use return on the value-weighted market portfolio.
C) The CAPM does not measure the market correlation.
D) Fama-French has two additional factors.
Answer: D
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