Because the DDM requires multiple estimates,investors should

Question

Quizplus · Accepted Answer

Both options (a) carefully examining inputs to the model, and (b) performing sensitivity analysis on price estimates are important for ensuring the accuracy of DDM estimates. While expert assistance may be helpful, it is not necessary for all investors. It is important to remember that any model is only as good as its inputs and assumptions, so investors should take care in using the DDM and not assume that estimates are always correct.

Because the DDM Requires Multiple Estimates,investors Should