Estimating the Cost of Capital

U.S. stocks, it represents more than 70% of the U.S. stock market capitalization. The Wilshire 5,000 is a value-weighted index of all U.S. stocks listed on the major stock exchanges. While more representative of the overall market than the S&P 500, the correlation between the two indices’ daily returns has exceeded 98% over the last 20 years. ................
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