Historically,both common stock and corporate bonds have performed well in times of inflation.

Question

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Historically, common stock may offer some protection against inflation over the long term because companies can increase prices to match inflation, potentially leading to higher profits and dividends. However, corporate bonds typically perform poorly during inflationary periods because the fixed interest payments lose purchasing power, and the real value of the principal repaid at maturity is eroded.

Historically,both Common Stock and Corporate Bonds Have Performed Well in Times