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Which method would work the best in accomplishing the following transformation?
Interest Rate Fluctuations
Variations in the interest rates over time, affecting borrowing costs and investment returns.
Inflation Uncertainty
The unpredictability regarding the rate at which the general level of prices for goods and services is rising, and subsequently, how purchasing power is being eroded.
Expected Return
The mean of the probability distribution of possible returns for a security or portfolio over a specified period.
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