Los 40.k Flashcards
(4 cards)
1
Q
A
2
Q
What is a commodity index? What are there disadvantageS?
A
Represent future contracts on comodities
Disadvantage:
* Use a variety of weighting schemes like global production values, or fixed weights (so indexes have different commodity exposures e.g. one is more about energy while one is more exposed to agriculture prices.
* Is based on the prices of commodity future products, not the spot prices, the return on futures differ from returns on the commodity itself
3
Q
What is a REIT
A
Real estate invesment trust- where you can buy SHARES of corporations that are organised to invest in real estate.
4
Q
A
