- CFA Exams
- CFA Level I Exam
- Topic 8. Alternative Investments
- Learning Module 5. Natural Resources
- Subject 2. Risk and Returns of Natural Resources
CFA Practice Question
The commodity's cost of carry include: I. storage cost
II. interest
III. convenience yield
Correct Answer: I and II
Cost of carry refers to costs associated with the carrying value of an investment. These costs can include financial costs, and any storage costs involved in holding a physical asset.
The convenience yield is a value benefit of actually holding the commodity.
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