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Basic Question 1 of 4
Which component of the discount rate varies the most among various asset classes?
B. Inflation premium
C. Risk premium
A. Real risk-free interest rate
B. Inflation premium
C. Risk premium
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I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz
Learning Outcome Statements
explain the notion that to affect market values, economic factors must affect one or more of the following: (1) default-free interest rates across maturities, (2) the timing and/or magnitude of expected cash flows, and (3) risk premiums;
explain the role of expectations and changes in expectations in market valuation;
CFA® 2025 Level II Curriculum, Volume 6, Module 37.