Seeing is believing!

Before you order, simply sign up for a free user account and in seconds you'll be experiencing the best in CFA exam preparation.

Find out more

Basic Question 8 of 13

Which commodity yield can be either positive or negative to the long investor?

I. Collateral yield
II. Roll yield
III. Spot price return
Check Answer Previous Q Next Q Print

User Contributed Comments 3

User Comment
johntan1979 Don't be too sure that collateral yield can never be negative e.g. negative T-bills like what happened last year.
drewnelson In practice, collateral isn't necessarily held till maturity and can by negative.
Sagarsan88 I am not sure. But if interest rate are negative the collateral yield will still be zero. As you won't invest the margin money in risk free bond but hold it as cash?
You need to log in first to add your comment.
I just wanted to share the good news that I passed CFA Level I!!! Thank you for your help - I think the online question bank helped cut the clutter and made a positive difference.
Edward Liu

Edward Liu

Learning Outcome Statements

compare theories of commodity futures returns;

describe, calculate, and interpret the components of total return for a fully collateralized commodity futures contract;

contrast roll return in markets in contango and markets in backwardation;

CFA® 2025 Level II Curriculum, Volume 5, Module 33.