Journal of Financial and Quantitative Analysis Vol. 6 No. 3 1971
Individual Common Stocks as Inflation Hedges
Abstract
The results of this study indicate that the individual common stocks in the Dow-Jones. Industrial Average were not consistent inflation hedges. Assuming an 8.2 percent normal required rate of return, none of the common stocks was a complete inflation hedge during all three recent inflationary periods tested. Even assuming a zero normal required rate of return á la traditional investment theory, only six (20 percent) of the thirty common stocks sampled were inflation hedges during all three inflationary periods.
- DOI
- 10.2307/2329917
- Volume
- 6
- Issue
- 3
- Pages
- 1015
- Sources
- crossref openalex