Inflation risk does not affect security investors.

Name: Inflation risk does not affect security investors.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Inflation risk is another risk that security investors face.This risk relates to the underlying rate of inflation relative to nominal yields.Ultimately,investors are concerned with inflation-adjusted returns.Hence,the larger the relative rate of inflation,irrespective of the nominal yield,the smaller the real rate of return.

Inflation Risk Does Not Affect Security Investors