The components of CAPM that are most sensitive to inflation are the risk-free rate and market rate
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The components of CAPM that are most sensitive to inflation are the risk-free rate and market rate of return. Can you suggest how CAPM can be used to capture expected changes to the return to a stock due to changes in inflation?
Related Book For
Macroeconomics Principles Applications and Tools
ISBN: 978-0134420684
9th edition
Authors: Arthur O'Sullivan, Steven Sheffrin, Stephen Perez
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