Seeing is believing!

Before you order, simply sign up for a free user account and in seconds you'll be experiencing the best in CFA exam preparation.

Find out more

Basic Question 1 of 7

The arguments for investing in commodities are:

I. The potential for returns.
II. portfolio diversification.
III. inflation protection.
Check Answer Next Q Print

User Contributed Comments 1

User Comment
923029 A commodity might sink in price .... deflator in such a case.
You need to log in first to add your comment.
I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz

Tamara Schultz

Learning Outcome Statements

describe features of commodities and their investment characteristics

analyze sources of risk, return, and diversification among natural resource investments

CFA® 2025 Level I Curriculum, Volume 5, Module 5.