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Review of “Conquering Misperceptions…” by Erb & Harvey
Read the Financial Analysts Journal article, “Conquering Misperceptions about Commodity Futures Investing,” by Erb & Harvey, and provide a summary of the article.
Demonstrate your understanding of the main points, so you should reference from within the article, of course, in your own words. What is the income return for a commodity portfolio? What has been driving commodity portfolio returns? What has been driving commodity “total” returns? What has been driving commodity “price” returns? Finally, what are the commodity return components’ correlations with inflation?