adjust inflation? anything, welcome, valuation, exercises

rosemary2011

brave ones,

when do we really have to adjust inflation (when we compute cost of equity with capm)

in MOCK CFAI (AM) Q 21 : they gave us the inflation but they didn't adjust the RFR...

I can almost swear that in equity valuation exercises I had to adjust it to get the nominal one.


(is this correct: when they don't mention anything we assume is already the nominal RFR?)


any comments welcome. thks!