@jeffcliff @cjd @mjdigspigs @vic >inflation on cash is a separate risk
It is. The standard formula for ROI accounts for inflation and 3 month treasury rate. CAPM sets the default rate at treasuries and assigns risk based pricing for investors so that there's alpha to correspond to beta. If things get too desynced, the price of the asset moves. It's not the only formula used today, but it's still practical in a generalized way of understanding asset price of debt and its relationship to the risk free rate of return (treasuries).