The Price of Money (E

True/False

the price of money (e.g., interest rates and equity capital costs) increases due to an increase in anticipated inflation, the risk-free rate will also increase If there is no change in investors' risk aversion, then the market risk premium (rM − rRF) will remain constant Also, if there is no change in stocks' betas, then the required rate of return on each stock as measured by the CAPM will increase by the same amount as the increase in expected inflation.