Which One of These Statements Is Correct

question 57

Multiple Choice

Which one of these statements is correct?

• A)ROE as used in the estimation of g is defined as a firm's earnings divided by the market value of its equity.
• B)The DDM requires a short-term estimate of dividend growth.
• C)Academics generally prefer the DDM over the CAPM.
• D)The DDM seems to have more estimation error than the CAPM.
• E)Measurement error in the estimate of the growth rate of dividends increases as you move from a single security to the overall market.

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