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Question
Which of the following are true about inflation?
I. It depresses market valuations.
II. Investors tend to correctly perceive inflation.
III. It does not affect the cost of capital in real terms.
IV. It can affect the real-terms cash flows generated by companies.
a) I and II only.
b) I and IV only.
c) II and III only.
d) III and IV only.
Answer
This answer is hidden. It contains 93 characters.
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