Given that prior research into industry cost of equity indicates that CAPM-derived estimates are no worse than estimates from more complex models, we investigate the bias of the standard CAPM approach for each industry separately, and examine the effectiveness of alternative beta estimators. We...

This article introduces a broadly-applicable new method of statistical analysis called hypotheses assessment. The method uses sample data to directly measure the truthfulness of competing hypotheses. Our aim is to determine frequentist non-misleading confidences in the hypotheses that are as...