Question

The inflation risk, which inflation indexation aims to mitigate (check all that apply)
1 point

Is the risk that the nominal rate of return of an investment will exceed the rate of inflation.


Is the risk that the cash flow from an investment won’t be worth as much in the future because of changes in purchasing power due to inflation.


Is not the risk that there will be inflation, it is the risk that inflation will significantly fluctuate over time.


Is associated with any investment that involves cash flows over time.

3.

Answer 1

what is this I can't understand please tell me in short.