Alternative Investments - Alternative Investments Section 1
31. When future prices are higher than the spot price, the commodity forward curve is:
- Option : A
- Explanation : A downward sloping curve occurs when the futures prices are lower than the spot price. This condition is called backwardation.
- Option : C
- Explanation : Roll yield refers to the difference between the spot price of a commodity and the price specified by its futures contract.
34. Which of the following is least likely to be correct about hedge fund valuation?
- Option : A
- Explanation : Development capital refers to minority equity investment in more mature companies looking to enter new markets.
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