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Which problem listed is not associated with the correspondingmethod of measuring

ID: 2661790 • Letter: W

Question

Which problem listed is not associated with the correspondingmethod of measuring the common stockholder's required rate ofreturn?
a. Estimation of the expected growth rate of future dividends:The dividend-growth model b. Determination of the expectations in the minds ofinvestors: The CAPM approach c. The estimates of the risk premium involve subjectivity: Therisk-premium approach d. All of the above are correct Which problem listed is not associated with the correspondingmethod of measuring the common stockholder's required rate ofreturn?
a. Estimation of the expected growth rate of future dividends:The dividend-growth model b. Determination of the expectations in the minds ofinvestors: The CAPM approach c. The estimates of the risk premium involve subjectivity: Therisk-premium approach d. All of the above are correct

Explanation / Answer

Answer is (c) The estimates of the risk premiuminvolve subjectivity: The risk-premium approach
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