Question #4
Reading: Reading 32 Introduction to Commodities and Commodity Derivatives
PDF File: Reading 32 Introduction to Commodities and Commodity Derivatives.pdf
Page: 2
Status: Incorrect
Correct Answer: A
Your Answer: B
Question
As compared to a production value-weighted index, an equally weighted index would most likely have:
Answer Choices:
A. higher weight to oil
B. lower weight to oil
C. equal weight to oil
Explanation
Production value weighted indexes have higher weight to energy (e.g., oil) as compared to
equal weighted index.