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The CAPM has an advantage over DDM because the CAPM: a is more simplistic. b specifically considers a firms degree of operating leverage. c applies

The CAPM has an advantage over DDM because the CAPM:

a is more simplistic.

b specifically considers a firms degree of operating leverage.

c applies to firms that pay dividends.

d explicitly adjusts for risk. e ignores changes in the overall market over time.

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