Which One of These Statements Is Correct

question 70

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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Definitions:

Neuron

A nerve cell that is the basic building block of the nervous system, responsible for transmitting information throughout the body via electrical and chemical signals.

All-or-None

A principle that states a neuron fires with the same potency each time, though action is dependent on whether or not the stimulus meets the threshold.

Action Potential

A temporary reversal of the electrical polarization of the membrane of a neuron or muscle cell, allowing for the transmission of signals.

Neuron

A cell of the nervous system that transmits information through electrical and chemical signals.