One incorrect belief that is often cited as a reason for fully-funded pension funds to invest in equities is
A) stocks have higher risk.
B) bonds have lower returns.
C) stocks provide a hedge against inflation.
D) stocks have higher returns.
E) All of the options are incorrect beliefs that are often cited.

Question

Quizplus · Accepted Answer

Stocks providing a hedge against inflation is often cited as a reason for investing in equities, but it is not always true or guaranteed, making it an incorrect belief.

One Incorrect Belief That Is Often Cited as a Reason