What is the inflation premium

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Question 1: The required rate of return in valuing an asset is based on the risk involved. Identify two types of risk that affect investments and briefly describe them.

Question 2: What is the inflation premium? Where do we see this concept applied most often?

Question 3: Explain what is meant by the required rate of return and include an example.

Question 4: The Week 5 Case Study Assignment is the fourth of a series of analytical tasks, spanning several weeks. Your task involves an analysis of general economic conditions or systematic risk, i.e., the risk that affects all industries and companies, in the U.S. macroeconomy. Your goal is to determine in percentage terms an optimal allocation of $1,000,000 among the following three asset classes: U.S. equities, U.S. Treasury bonds, and cash.

Reference no: EM133496103

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