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The Dividend Discount Model (DDM) is a model that: Relates the required rate of return on a stock to the systematic risk measured by beta.

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The Dividend Discount Model (DDM) is a model that: Relates the required rate of return on a stock to the systematic risk measured by beta. Includes the market index, firm size, and book value as the explanatory variables. Provides the set of all optimal portfolios and weights. Calculates the intrinsic value of a stock based on the present value of all future dividend payments

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