Factors influence the required rate of return by investors


Problem 1. Could you explain why debtors benefit during periods of high inflation. Why would someone in Argentina want to have debt and why does money have a time value?

Problem 2. Also, how is the present value of a lump sum related to the present value of a stream of payments? How is this helpful for retirees that are considering taking a lump sum payment in lieu of monthly pension payments?

Problem 3. What are the three factors that influence the required rate of return by investors?

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Finance Basics: Factors influence the required rate of return by investors
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