HCBE Faculty Articles
Equity Price Sensitivity and Expected Inflation
Document Type
Article
Publication Title
Journal of Investing
ISSN
1068-0896
Publication Date
2012
Abstract/Excerpt
The authors specify a regression model for equity price sensitivity, and using this model identify several factors that determine how sensitive the equity price will be to changes in expected inflation. Results suggest that portfolio managers who believe expected inflation will increase significantly should tilt their portfolios toward low-yielding companies making significant investments in real assets and rely heavily on nominal contracts as a funding source.
DOI
10.3905/joi.2012.21.3.024
Volume
21
Issue
3
First Page
24
Last Page
35
NSUWorks Citation
Palkar, Darshana D. and Wilcox, Stephen E., "Equity Price Sensitivity and Expected Inflation" (2012). HCBE Faculty Articles. 772.
https://nsuworks.nova.edu/hcbe_facarticles/772
