1. Michelson’s view was that financial markets would remain in turmoil, and his bet was that gold prices would continue their sustained run-up fueled by:

 

The 2008 credit crisis The 2008 credit crisis - public debt crisis 1997 Asian financial crisis 1994-1995 Mexican crisis

EXPLANATION

 

2. The gold futures price levels had risen to historical highs in:

 

2008 2009 2011 2012 2012 - 

EXPLANATION

 

3. ETF shares traded the same was as . . . and made commodities more accessible than ever.

 

bonds bonds - instocks  options swaps

EXPLANATION

 

4. The advantages in using futures markets to gain exposure to commodities:

 

liquid markets, transparent markets, highly regulated markets, futures contracts were cheap to use , -  liquid markets  transparent markets  highly regulated markets  futures contracts were cheap to use 

EXPLANATION

 

5. The total return performance of a futures-based ETF such as DGL has the following components:

 

The spot price return from changing physical gold prices in the spot market, The roll yield or the gain or loss that resulted from rolling futures contracts, - in The spot price return from changing physical gold prices in the spot market  The roll yield or the gain or loss that resulted from rolling futures contracts  The return from investing the excess cash in the fund not used by the margin  The expense ratio 

EXPLANATION

 

6.The performance of the futures-based ETF. If the selling price of the expiring contract – which was close to the spot price at maturity – was lower than the purchase price, the investor would incur a:

 

loss loss - 

 

7.There had been performance slippage of futures-based ETFs . . . . . .

 

from 2000 to 2007 from 2007 to 2008 from 2007 to 2008 - infrom 2007 to 2012  from 1995 to 2004

 

8. In previous years, as gold prices increased the stock price of gold mining companies had not appreciated because miners had:

 

lower costs rising costs rising costs 

 

9. Oil futures curve was generally in contango, but it would sometimes invert, which is generally referred to as:

 

swaption backwardation backwardation - yield curve ETF

 

10. This component gave DGL an edge over physically backed gold ETFs in certain environments. Because only a portion of cash was needed for margins to achieve the required gold exposure through futures contracts, DGL was able to earn interest on uninvested cash. When interest rates were high, this yield could be significant:

 

The spot price return from changing physical gold prices in the spot market The spot price return from changing physical gold prices in the spot market - inThe roll yield The return from investing the excess cash in the fund not used by the margin  The expense ratio

 

11. Which of the following provided the highest performance between 2007 and 2012?

 

Gold Spot Price (London Gold Fixings pm close)  U.S. Government Bonds (TLT – Barclays 20+Yr Treasury Bond ETF) U.S. Government Bonds (TLT – Barclays 20+Yr Treasury Bond ETF) - inU.S. Stocks (SPY – SPDR SP500)

 

12. Which of the following provided the highest return between 2007 and 2012?

 

Futures-Based Oil ETF (USO: United States Oil Fund) Futures-Based Oil ETF (USO: United States Oil Fund) - inCrude Oil Spot Price (Cushing, OK. WTI Spot) 

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Status NEW Posted 30 Jan 2018 04:01 AM My Price 5.00

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