CFA Practice Question

There are 275 practice questions for this study session.

CFA Practice Question

True or False? A commodity index return is based on changes in the prices of the underlying commodities only.
Correct Answer: False

It is based on a number of factors: the risk-free interest rate, the changes in futures prices, and the roll yield.

User Contributed Comments 2

User Comment
xemex131 doesnt 'prices of underlying commodity' in itself means the price of the commodity futures
zriddle I believe that the 'prices of the underlying commodity' is referring to the spot price.
You need to log in first to add your comment.