samuelsutton8717 samuelsutton8717

18-02-2020
Business

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The inflation premium: A. increases the real return. B. is inversely related to the time to maturity. C. remains constant over time. D. rewards investors for accepting interest rate risk. E. compensates investors for expected price increases.

Respuesta :

kaympoey08 kaympoey08

20-02-2020

Answer:

The answer is E. compensates investors for expected price increases.

Explanation:

Inflation premium arise from that, investors holding nominal assets

are exposed to unanticipated changes in inflation.

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