The required returns of investors in common stock

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In this week's discussion board we will investigate the relationship between risk and return. In this regard, let's explore the following topics:

in 400 words:

1. What effect do increasing inflation expectations have on the required returns of investors in common stock?

2. Explain the specific relationship between risk and reward and why this relationship must be true.

Risk-return profile of two mutual funds for investment : You are considering the risk-return profile of two mutual funds for investment. calculate the probability of earning a negative return for each fund.

What will be the adjusted total cash flow from the sale : What will be the adjusted total cash flow (ATCF) from the sale of the machining tool?

What is the interest rate on this loan : Imagine you are discussing a loan with a somewhat unscrupulous lender. What is the interest rate on this loan?

The required returns of investors in common stock : What effect do increasing inflation expectations have on the required returns of investors in common stock?

Using the liquidity premium theory of term structure : Using the Liquidity Premium Theory of Term Structure, what should be the current 2-year interest rate? What about the current 3-year interest rate?

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