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Commodity Price Indexes Do NOT Have Which of the Following

Question 16

Multiple Choice

Commodity price indexes do NOT have which of the following features?


A) These indexes often use futures prices in index computation.
B) As these indexes are weighted averages,they typically have a fairly heavy weighting in the energy sector.
C) The managers of the index must periodically roll the futures index by replacing the expiring futures with similar new contracts.
D) Many financial products have been devised based on these indexes.
E) Exchange traded funds (ETFs) are futures that have been devised based on commodity price indexes.

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