Answer: poor as equities tend not to pay off in bad times.

Equities are considered poor consumption hedges because they tend to perform poorly during economic downturns when consumption needs are highest. When the economy is weak and people need to maintain their consumption levels, equity values typically decline, making them unreliable as a hedge against consumption risk. Option A focuses on loss potential but doesn't directly address the consumption hedging aspect, while option C discusses historical performance but not the hedging properties.

Author: LeetQuiz Editorial Team