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\begin{tabular}{|c|c|c|c|c|c|c|c|}
\hline \begin{tabular}{l}
Market Overview \\
CRAR Inclet \\
(Commodities)
\end{tabular} & \multicolumn{3}{|c|}{\begin{tabular}{l}
Industries: \\
(Dow Index)
\end{tabular}} & \multirow{2}{}{\multicolumn{2}{|c|}{\begin{tabular}{ll}
S\&P 500 & \\
[tex]$\ \textless \ /em\ \textgreater \ \quad 9.18 \quad 1235.86$[/tex]
\end{tabular}}} & \multicolumn{2}{|c|}{ Dollar Index } \\
\hline[tex]$\therefore 4.92 \quad 316.65$[/tex] & & -14.97 & 10595.13 & & & [tex]$x+32$[/tex] & 88.12 \\
\hline \multicolumn{2}{|c|}{ Financials } & & & \multicolumn{2}{|l|}{ Agricultural } & & \\
\hline a Gold & Oct & 4412 & 46 & . Soybeans & Sep & 6754 & +2 \\
\hline a Crude Oil & Sep & 6194 & +56 & Coffee & Sep & 10660 & +35 \\
\hline A Natural Gas & Sep & 8505 & +34 & - Live Cattle & Aug & 8062 & -168 \\
\hline a CRB Index & Sep & 31625 & +50 & [tex]$\cdot$[/tex] Corn & Sep & 2244 & -24 \\
\hline + 10 Year Note & Sep & 110050 & -165 & [tex]$\cdot$[/tex] Sugar & Oct & 1015 & -7 \\
\hline
\end{tabular}

11. Has the future price of Crude Oil risen or dropped?

12. By how much?

13. As a commodities trader, would you prefer to have Soybeans or Coffee in your portfolio right now? Explain why.

14. Compare the CRB Index, the Dow Index, the S\&P Index, and the Dollar Index. What does this tell you about the importance of diversification?



Answer :

GinnyAnswer
Let's break down and provide step-by-step answers to each question based on the given information:

### 11. Has the future price of Crude Oil risen or dropped?

The future price of Crude Oil is 6194, and the price change is +56. Since the price change is positive, we conclude that the price has risen.

Answer: The future price of Crude Oil has risen.

### 12. By how much?

The given price change for Crude Oil is 56.

Answer: The future price of Crude Oil has risen by 56 units.

### 13. As a commodities trader, would you prefer to have Soybeans or Coffee in your portfolio right now? Explain why.

The current price of Soybeans is 6754 with a price change of +2, while the current price of Coffee is 10660 with a price change of +35.

Both Soybeans and Coffee have increased in price, indicating upward trends. However, Coffee has a significantly higher price change value compared to Soybeans. This suggests that Coffee may be experiencing stronger growth or higher demand compared to Soybeans.

Answer: As a commodities trader, I would prefer to have Coffee in my portfolio right now because the price change (+35) suggests a stronger upward trend compared to Soybeans (+2).

### 14. Compare the CRB Index, the Dow Index, the S&P Index, and the Dollar Index. What does this tell you about the importance of diversification?

- CRB Index: 31625
- Dow Index: 10595.13
- S&P 500 Index: 1235.86
- Dollar Index: 88.12

These values represent different segments of the market: the CRB Index represents commodities, the Dow Index represents industrial stocks, the S&P 500 Index represents a broader range of large-cap stocks, and the Dollar Index measures the value of the US dollar relative to other currencies.

Comparing these indices shows that they all have different values and likely different movements over time. Investing in a mix of these assets can help spread risk because if one sector or asset class falls, others may rise or remain stable, balancing the overall portfolio’s performance.

Answer: The comparison of the CRB Index, Dow Index, S&P 500 Index, and Dollar Index highlights the importance of diversification. It shows that different indices and asset classes can have varying price movements and trends, thus spreading risk and potentially leading to a more stable and balanced investment portfolio.

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