Question: Statement True False Historical inflation rates, as opposed to expected future rates of inflation, should be used when calculating an investment s nominal risk -

Statement
True
False
Historical inflation rates, as opposed to expected future rates of inflation, should be used when calculating an investments nominal risk-free rate of return.
On average and everything else held constant, rational savers and investors prefer to invest $1,500 to acquire an asset that will pay annual cash flows of $300 per year rather than an otherwise identical asset that will pay $500 per year.
All things being equal, rational savers and investors prefer to invest in an asset that provides a 12% return rather than one that provides an 8% return.
On average and everything else held constant, 30-year U.S. Treasury bonds should expect to exhibit a smaller maturity premium than a 1-year U.S. Treasury bill.
On average and everything else held constant, it is generally assumed that savers and investors prefer immediate consumption to deferred, or postponed, spending.

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