Which of the following statement is incorrect about the Fisher Equation? In general, investors have very good prediction of the inflation rate, regardless of their investment horizon. Therefore, the Fisher hypothesis has gained much support using historical data. As the inflation rate increases, investors will demand higher nominal rates of return In equilibrium, investors are concerned with real returns, which are their purchasing power, we should expect nominal rate to move in lockstep with expected inflation. As the inflation rate decreases, investors will demand lower nominal rates of return