COMMENT: PORTFOLIO THEORY AND INDUSTRY COST-OF-CAPITAL ESTIMATES.

This article presents a comment on the article "Portfolio Theory and Industry Cost-of-Capital Estimates." The author discusses the differences between this study and a previous one that also presented an estimate for the cost of capital. The author offers a suggestion that would make their estimation approach, which makes use of the capital asset pricing model, more straightforward. Overall, the author states that the conclusions reached are reasonable and are consistent with previous research; however, greater empirical evidence would be beneficial for estimating the cost of capital in general.