Smithers & Co report on cost of capital (2006)

Smithers & Co report (93 pages, 5.8M PDF) for Ofgem complementing Smithers & Co (2003) and reviewing further evidence on the cost of capital, including a review of statistical evidence on CAPM and the Fama-French multifactor model. The report claims that using CAPM with beta well below one for transmission price controls would be consistent with the evidence.

For further information or advice please contact Franck Latrémolière.

Filed under Ofgem, Price controls.

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