问题
单项选择题
In order to more accurately estimate the cost of equity for a company situated in a developing market, an analyst should:（）
A. add a country risk premium to the market risk premium when using the capital asset pricing model (CAPM).
B. add a country risk premium to the risk-free rate when using the capital asset pricing model.
C. use the yield on the sovereign debt of the developing country instead of the market risk premium when using the capital asset pricing model.
答案
参考答案：A
解析：
In order to reflect the increased risk when investing in a developing country, a country risk premium is added to the market risk premium when using the CAPM.
