Equity Investments Q102

102Which of the following is least likely to be an issue pertaining to a commodity index?

A
Commodity indexes are based on future prices, rather than spot prices.
B
Commodity indexes may vary due to the use of different methodologies of determining weights.
C
Commodity indexes may show an upward bias due to the reflected performance of only surviving commodities.

Option : C
Explanation : Upward bias exists only in the case of hedge funds and not in the case of commodities. The other two options are definitely issues pertaining to a commodity index.

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