the inflation risk, which inflation indexation aims to mitigate (check all that apply )
1. Is the risk that the cash flow from an investment won't be worth as much in future because of changes in purchasing power due to inflation.
2.is the risk that the nominal rate of return of the investment will exceed the rate of inflation.
3.is not the risk that there will be inflation it is the risk that there will be inflation. It is the risk that inflation will significantly fluctuating overtime.
3.is associated with any investment that involves cash flows overtime.
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1) Is the risk that the cash flow from an investment won't be worth as much in future because of changes in purchasing power due to inflation.
4) is associated with any investment that involves cash flows overtime.
Explanation:
- Inflationary risk is the risk that inflation will "undermine an "investment's" "returns" by way of a decline in "purchasing power".
- Bond payments are more likely to be inflationary since their "payouts" usually are dependent on fixed interest rates and inflation decelerates their buying power..
- Several financial instruments are there "counteract inflationary risks".
To know more
What is an example of an inflation risk? - Brainly.in
https://brainly.in/question/6960008
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