Caia chapter 12 - Study guides, Class notes & Summaries

Why are commodities often viewed as an asset class that helps diversify portfolio of traditional assets? - Answer-Commodities has lack of return correlation with traditional assets Define nominal price - Answer-Nominal price refers to the stated price of an asset measured using the contemporaneous values of a currency Define inflation - Answer-Inflation is the decline in the value of money relative to the value of general bundle of goods and services Define real price - Answer-Real pric...

Inflation - Answer-- a quantitative measure of the rate at which the average price level of a basket of selected goods and services in an economy increases over a period of time. - It is the constant rise in the general level of prices where a unit of currency buys less than it did in prior periods. - a decrease in the purchasing power of a nation's currency. Nominal Price - Answer-- refers to the stated price of an asset measured using the contemporaneous values of a currency. Real P...

IMCA - The Investment Advisor Body of Knowledge + Test Bank_ Readings for the CIMA Certification (2015, Wiley) The Investment Advisor Body of Knowledge Readings for the CIMA® Certification IMCA® INVESTMENT MANAGEMENT CONSULTANTS ASSOCIATION Cover image: © iS / TarapongS Cover design: Wiley Copyright © 2015 by Investment Management Consultants Association. All rights reserved. Published by John Wiley & Sons, Inc., Hoboken, New Jersey. Published simultaneously in Canada. Excerpts ...