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True or false: Expected return and inflation are the two components of risky return in the total return equation.True false question.TrueFalse

Question

True or false: Expected return and inflation are the two components of risky return in the total return equation.True false question.TrueFalse

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Solution

False. The two components of risky return in the total return equation are expected return and unexpected return. Inflation is not considered a component of risky return.

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