Fama and Schwert (1977)find that government bonds are __________ related to expected inflation and equities are __________ related to expected inflation.

Question

Quizplus · Accepted Answer

Fama and Schwert (1977)provide a detailed analysis of the relationship between asset returns and inflation.They analyse the impact of both expected inflation and unexpected inflation over the period 1953-71 in the USA.It was found that only private residential real estate values closely track both expected and unexpected inflation.Government bonds were found to track expected inflation closely while equities were found to be negatively related to expected inflation.

Fama and Schwert (1977)find That Government Bonds Are __________ Related