Why should I choose AnalystNotes?
Simply put: AnalystNotes offers the best value and the best product available to help you pass your exams.
Basic Question 4 of 5
If other factors are equal, a decrease in the expected rate of inflation will most likely result in a decrease in ______.
B. the nominal risk-free rate
C. both real and nominal risk-free rates
A. the real risk-free rate
B. the nominal risk-free rate
C. both real and nominal risk-free rates
User Contributed Comments 6
| User | Comment |
|---|---|
| Stacerz02 | Makes sense |
| wsiyer | yes! |
| thebkr777 | Nominal = Real rfr + expected r |
| ashish100 | coolio |
| ashish100 | Wait no Nominal rfr = real rfr + expected inflation boiiii lets get it |
| zeanww | Let's goooo |
Thanks again for your wonderful site ... it definitely made the difference.
Craig Baugh
Learning Outcome Statements
interpret interest rates as required rates of return, discount rates, or opportunity costs and explain an interest rate as the sum of a real risk-free rate and premiums that compensate investors for bearing distinct types of risk
CFA® 2024 Level I Curriculum, Volume 1, Module 1.