How do asset values differ between using a traditional DCF approach and a stochastic discount factor approach?
What will be an ideal response?
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.
Business
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A flighting schedule of advertising:
A) involves continuous advertising with bursts of higher intensity B) involves advertising during certain times of the year with no advertising at other times C) is level throughout the year D) involves alternating levels of advertising from high to low amounts
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When additional profits can be made with a slow exit from a market, a(n) ________ strategy can be a good source of short-run profits
A) monetize B) invest C) divest D) harvest E) optimize
Business