The Proportion of Money Held as a Safe Asset in an Investor's

Multiple Choice

The proportion of money held as a safe asset in an investor's portfolio

A) increases as the need to hedge against inflation becomes greater
B) may be less important for wealthier investors who can hedge risks through diversification
C) increases when interest rates increase
D) is larger for the wealthy than for the poor
E) should always be at least 50% of the total portfolio