The Fisher Effect primarily emphasizes the effects of _____ risk on an investor's rate of return.

A) Default.
B) Market.
C) Interest rate.
D) Inflation.
E) Maturity.

Fisher Effect

An economic theory suggesting that the real interest rate is independent of monetary measures, with the nominal interest rate adjusting to expected inflation.

Rate Of Return

is the gain or loss on an investment over a specific period, expressed as a percentage of the investment’s initial cost.

Inflation Risk

The likelihood that the value of assets or income will decrease as inflation shrinks the purchasing power of a currency.