Question: Fay Thomas, a financial analyst, once remarked, Even if your dividend estimates and discount rate are correct, dividend discount models identify stocks that will produce

Fay Thomas, a financial analyst, once remarked, "Even if your dividend estimates and discount rate are correct, dividend discount models identify stocks that will produce positive risk-adjusted returns only if other investors eventually come to agree with the DDM's valuation conclusions." Is Fay's statement correct? Why?

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