CFA Practice Question

There are 195 practice questions for this study session.

CFA Practice Question

The primary argument for adding commodities to traditional portfolios is ______.

A. inflation shock and liability matching
B. that commodities provide a reduction in portfolio risk
C. return-timing diversification
Correct Answer: B

User Contributed Comments 4

User Comment
latteLover can anyone help explain?
ljamieson diversification.
8thlegend The note mentioned that it is negatively correlated to equity investments. So if the stocks are tanking people would go to buy commodity(gold) to make sure that their investment is safe.
happymind I think all are correct answer but because "Primary" was there in question so the answer is B
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