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by dgator002
Fri May 05, 2017 10:12 am
Forum: Simulation mechanics, assumptions, and inputs
Topic: Inflation affect On SD
Replies: 3
Views: 1273

Inflation affect On SD

Hello, What effect does inflation have on the portfolio standard deviation of returns in FRP? I understand the expected return is inflation adjusted and I assume it uses a formula similar to: (1+E(R))/(1+E(i))-1 It appears that FRP also adjusts the standard deviation of returns for inflation. I woul...