For example, as of late March 2004 the average expected inflation rate over the ensuing ten years was 2.91 per cent per annum - i.e. a nominal yield of 4.74 per cent minus a real yield of 1.83 per cent. This is consistent with the general principle of hedging, because a commitment to borrow in three months' time at an unknown interest rate is essentially an obligation to sell (i.e. to issue) a bond at that date. Gucci Shopping In Dubai. Conversely, if the impact of the additional variables on asset returns is significant, the evidence points against the CAPM - because the CAPM predicts that beta-coefficients alone are sufficient to explain the cross-section of returns. Gucci Sukey Large Tote Black. But this is not enough to eliminate risk, because it implies merely that positive values in some states are balanced by negative values in others. Gucci Shopping In Dubai. Consequently, as wealth changes with age, investors with CRRA utility functions do not change the share of their portfolios invested in risky equity relative to safe bonds. Gucci Small Belt Bag. In other words, evidence tat aj = 0 might mean that the CAPM should be discarded in favour of an alternative theory. Gucci Shopping In Dubai. They typically involve different delivery dates, different markets, different grades of the commodity, non-standard private agreements, a multiplicity of trading accounts, and so forth.