21. Fay Thomas, a financial analyst, once remarked: Even ifyour dividend estimates and discount rate assumption are

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21. Fay Thomas, a financial analyst, once remarked: "Even ifyour dividend estimates and discount rate assumption are correct, dividend discount models identify stocks that will produce positive risk-adjusted returns only if other investors eventually come to agree with the DDM's valuation conclusions." Is this statement correct? Why?

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Investments

ISBN: 9788120321014

6th Edition

Authors: William F. Sharpe, Gordon J. Alexander, Jeffery V. Bailey

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