How do asset values differ between using a traditional DCF approach and a stochastic discount factor approach?

Name: How do asset values differ between using a traditional DCF approach and a stochastic discount factor approach?
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Quizplus · Accepted Answer

The Answer is When implemented correctly,the two approaches will give the same present value.The DCF uses asset-specific state-dependent discount rates and the stochastic approach uses asset-independent,state-dependent discount rates.

How Do Asset Values Differ Between Using a Traditional DCF