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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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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.