Which one of the following statements is correct?

Multiple Choice

The DDM requires a short$-$term estimate of dividend growth.

Measurement error in the estimate of the growth rate of dividends increases as you move from a single security to the overall market.

The DDM seems to have more estimation error than the CAPM.

Academics generally prefer the DDM over the CAPM.

ROE as used in the estimation of g is defined as a firm's earnings divided by the market value of its equity.