5. Which of the following statements is/are true?

 

  • You should not increase the share of bonds in your portfolio when you expect high inflation in the future because the revenue you get from them does not increase with inflation.
  • You should increase the share of bonds in your portfolio when you expect high inflation in the future because the revenue you get from them increases with inflation.
  • High inflation is generally good for equities and bonds.
  • High inflation is generally bad for equities and bonds.

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