Question: Why would you adjust your expected rate of return when the rate of inflation is projected to rise from 0% to 4%? Can you give

Why would you adjust your expected rate of return when the rate of inflation is projected to rise from 0% to 4%? Can you give an illustration of the outcome if this adjustment is not made

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Why would you adjust your expected rate of return when the rate of inflation is projected to rise from 0% to 4% ? Can you give an illustration of the outcome if this adjustment is not made? [10 marks]

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