CFA Practice Question

There are 139 practice questions for this study session.

CFA Practice Question

Commodities can be used as a hedge against inflation because:
A. The correlation between the monthly commodity price changes and monthly CPI changes is positive.
B. The volatility of commodity prices is close to the volatility of CPI.
C. The correlation of stocks, bonds and commodities are positive as each has some exposure to the business cycle.
Explanation: Some commodities are included in the basket for CPI calculations.

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