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Basic Question 7 of 7

Which statement is FALSE regarding contango?

A. It generally lowers the return of the long-only investor.
B. The commodity forward curve is upward sloping.
C. It occurs when the convenience yield is high.

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I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach

Andrea Schildbach

Learning Outcome Statements

describe features of commodities and their investment characteristics

analyze sources of risk, return, and diversification among natural resource investments

CFA® 2024 Level I Curriculum, Volume 5, Module 5.