Answer:
<u>Real Property </u>
Explanation:
Capital markets refer to the market which trades in long term securities whose maturity is more than an year. The instruments traded in capital markets are usually stocks and bonds.
In private equity real estate, public and private investments are pooled together and invested in the real estate property markets. So here the underlying asset whose price fluctuates is property. If property prices soar, the investors stand to gain.
This kind of investment involves high risk but is also capable of generating a higher return as greater the risk involved, greater the return.
Answer:
I messaged you the asnwer.
Explanation:
Time value of money (TVM) is the concept that an amount of money today is worth more than the same amount of money in the future because of the potential for earnings. This is a basic principle of finance. Money in hand has more value than the same money paid in the future.
Time value of money. Simply put, the value of a given amount of money today is worth more than it will be worth tomorrow. This is not due to temporal uncertainty, it is simply due to timing. The difference between the value of money today and tomorrow is called the time value of money.
Learn more about the time value of money here:brainly.com/question/3811399
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Answer: b. using a fixed basket of goods and, therefore, will tend to overstate inflation.
Explanation:
CPI uses a fixed basket of goods each year and measure inflation by monitoring the changes in this basket over several years/ periods.
This has the tendency to overstate inflation however, due to three(3) main reasons: Substitution bias, Quality bias and New product bias.
With substitution bias, the CPI does not take into account that when products increase in price, people will substitute them for lower priced goods. Quality bias means that CPI does not account for change in quality. New Product bias means that CPI does not account for new and better products as it uses a fixed basket.
Put together these three can cause CPI to overstate inflation by as much as 1% sometimes.
