Question: 5. In class, we found that returns for commodities were poor returns relative to other asset classes while the standard deviation of returns was relatively
5. In class, we found that returns for commodities were poor returns relative to other asset classes while the standard deviation of returns was relatively high. Returns for commodities also exhibited low and sometimes negative correlation with returns from other asset classes. The combination of low returns and high risk is not attractive to investors. Is there a reason for investors to include commodities in their portfolios? Write a short paragraph.
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
