Which One of These Statements Is Correct

Multiple Choice

Which one of these statements is correct?

A) ROE as used in the estimation of g is defined as a firm's earnings divided by the market value of its equity.
B) The DDM requires a short-term estimate of dividend growth.
C) Academics generally prefer the DDM over the CAPM.
D) The DDM seems to have more estimation error than the CAPM.
E) Measurement error in the estimate of the growth rate of dividends increases as you move from a single security to the overall market.