Why can commodity benchmarks not use a market-cap method of weighting?
A) They can, and it's the most frequently used
B) Because the industries are not considered investable
C) Because commodity futures are a zero-sum game
D) The dynamic nature of contracts makes computation prohibitively difficult作者: dyga 时间: 2011-7-13 17:10
Good question. Thanks man.
I think I will go with D, but C is also attractive.
EDIT: Can I change? Now I choose C, because Schweser says that.
Book 4 page 17.
Edited 1 time(s). Last edit at Monday, May 17, 2010 at 12:06PM by Boris_7.作者: nannan66 时间: 2011-7-13 17:10
answer please作者: thommo77 时间: 2011-7-13 17:11
Boris gave it to you above.作者: ohai 时间: 2011-7-13 17:11
C ... futures are a zero sum game作者: strikethree 时间: 2011-7-13 17:11
Sry man for answering your question for you.
So can I say, since all derivatives are zero sum, market-cap method is off for all of them? Hedge funds with market neutral strategy is off as well?
skillionaire Wrote:
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> Boris gave it to you above.作者: PalacioHill 时间: 2011-7-13 17:11
yeah market cap method cant work for any derivative because they are a zero sum game. The market capitalization would always be zero.
Not sure about hedge funds, because they are not a zero-sum game.作者: bpdulog 时间: 2011-7-13 17:11
