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Author Question: If the price of money (e.g., interest rates and equity capital costs) increases due to an increase ... (Read 8 times)

Adc3669

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on: Aug 7, 2023
If the price of money (e.g., interest rates and equity capital costs) increases due to an increase in anticipated inflation, the risk-free rate will also increase. If there is no change in investors’ risk aversion, the change in the risk-free rate will cause a change in the required market return, resulting in a relatively stable market risk premium (rM– rRF).However, if there is no change in stocks’ betas, then the required rate of return on each stock as measured by the CAPM will increase more than the increase in expected inflation.

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Financial Management: Theory and Practice ¦ Brigham, Ehrhardt, Gessaroli, Nason ¦ 4th Edition
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Marked as best answer by Adc3669 on Aug 7, 2023

ad2018

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Reply #1 on: Aug 7, 2023
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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Adc3669

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Reply 2 on: Aug 7, 2023
Wow, this really help

robbielu01

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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