n NISM Certifications
XXI NISM Series XXI-A
Medium

The "Dividend Discount Model" is used for valuing:

Practice question from NISM XXI A for PMS - Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Bonds

  2. Stocks based on expected future dividends

    Correct answer

  3. C

    Real estate assets

  4. D

    Derivative instruments

Why this is the answer

The DDM calculates stock value from present value of expected dividends.

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