Explain why inflation risk is a problem for investors.
What will be an ideal response?
Inflation risk increases the riskiness of an investor's real return. Investors do not like risk to their real returns and will pay to avoid it.
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When presenting decreases in long-term investments in the investing activities section of the statement of cash flows, the amount reflected equals the amount of the gain(s) or loss(es) from the transaction(s)
Indicate whether the statement is true or false
An acknowledgment on a deed: A)?Is a type of warranty
B)?Is a notary verification. C)?Cannot be placed on a quitclaim deed. D)?Is assumed on a warranty deed.
The GFE does not require disclosure of loan cost comparisons
Indicate whether the statement is true or false
Sjostrom Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range. Sales (7,000 units)$280,000Variable expenses 182,000Contribution margin 98,000Fixed expenses 84,000Net operating income$14,000 If the selling price increases by $3 per unit and the sales volume decreases by 600 units, the net operating income would be closest to:
A. $35,000 B. $24,800 C. $32,000 D. $19,200