CFA Practice Question

CFA Practice Question

Which of the following is incorrect?
A. Commodity investments have high inflation risk.
B. An alternative to an investment in commodity is equity of firms whose main products are the same commodity.
C. A long position in Treasuries combined with a futures position in a commodity is a collateralized commodity futures position.
Explanation: Actually commodity prices increase during times of inflation, thus providing their investors with a hedge against inflation.

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