Aternative Invesment Q from mock 2 country, living, likely, income

Chuckrox8

119 When compared to investors living in a country with high inflation, investors living in a country with generous state pensions will most likely have allocations to equities and fixed income investments, respectively, that are:
Equities Fixed Income
A. Lower Lower
B. Lower Higher
C. Higher Lower
D. Higher Higher
Is it C?

Beatnik

B. Lower Higher
Generous state pensions and income from FI.

JRossSter

I would have thought that they would have had a higher equity allocation and a lower FI allocation because the generous pension would mean that the government provides a part of their FI allocation (that way the have spare money to put into equity).
Am I reading this question the wrong way?

Zesty

Ditto! If I had a handout awaiting me, you’d better believe I’d be rolling the dice a lot more with my own money.

luda002

B is correct. If you live in a country with a good pension system then you don’t have to invest aggressively to save for the future. Instead you would put your money into relatively safe investments that maintain or preserve capital.