LOS q: Explain the motivation for investing in commodities, commodities derivatives, and commodity-linked securities.

Q1. Commodity-linked securities may be appropriate for investors:

A)   prohibited from owning physical assets.

B)   seeking speculative profits in the commodities market.

C)   seeking investments that are negatively correlated with inflation.

Q2. All of the following are examples of commodity-linked equities EXCEPT:

A)   a gold mining company.

B)   an oil and gas exploration company.

C)   a supermarket operating company.

Q3. In periods of rising inflation, commodities can act as a hedge to a portfolio of stocks and bonds because the:

A)   commodities will typically appreciate in price while the prices of the stocks and bonds may decline.

B)   commodities will not be affected by a rise in inflation.

C)   commodities can provide current income to offset any price decreases in the stocks and bonds.

LOS q: Explain the motivation for investing in commodities, commodities derivatives, and commodity-linked securities. fficeffice" />

Q1. Commodity-linked securities may be appropriate for investors:

A)   prohibited from owning physical assets.

B)   seeking speculative profits in the commodities market.

C)   seeking investments that are negatively correlated with inflation.

Correct answer is A)

Commodity-linked securities are not derivatives, though their performance is linked to some commodity price. Commodity-linked securities are positively correlated with inflation. Commodity-linked securities are an appropriate investment for those who are prohibited from directly owning real assets such as commodities, but wish to participate in the market.

Q2. All of the following are examples of commodity-linked equities EXCEPT:

A)   a gold mining company.

B)   an oil and gas exploration company.

C)   a supermarket operating company.

Correct answer is C)

The stocks of a gold mining company and an oil and gas exploration company are highly correlated with commodities prices, because their values are closely linked to the price of the commodities they produce. A supermarket chain will be more diversified, and many other factors will contribute to the value of the company.

Q3. In periods of rising inflation, commodities can act as a hedge to a portfolio of stocks and bonds because the:

A)   commodities will typically appreciate in price while the prices of the stocks and bonds may decline.

B)   commodities will not be affected by a rise in inflation.

C)   commodities can provide current income to offset any price decreases in the stocks and bonds.

Correct answer is A)        

In a period of rising inflation, the prices of commodities tend to go up, while the prices of stocks and bonds often tend to go down. Thus, the commodities position will act as an inflation hedge for the stock and bond portfolio.

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designs of wedding gowns

Gowns are typically bustled either on the top of the gown, or underneath the skirts. The concept is the same: identify several points midway down on the skirt/train and secure these points higher up on the gown. Bustling on the top of the gown is usually accomplished with thread eyes carefully placed in the mid-section of the skirt, which are then secured around on the of back opening buttons, or on a button or hook higher on the skirt or near the waist.  These buttons, hooks, and thread loops can be concealed with the gown’s ornamentation if necessary.  wedding dresscheap bridal gownWedding GownsglovesMother of bride dresses2010 bridemaids dressestea length wedding dress2010 bridemaids dressesbridemaid dressWedding Gownsbridal gownwedding dresswedding dresscheap Wedding dressesgloveFlower Girl Dresses2010 Wedding Gownswedding dressesgloveWedding Gownstea length wedding dressMother of bride dressesWedding Gownsbridemaid dress2010 bridemaids dresses

Bustles. One of the first things we think about as we study the styles and designs of wedding gowns is that it should look beautiful both during the ceremony and during the reception. After the ceremony, the bride usually wants to be able to move more freely, be able to turn easily, and perhaps be able to dance. If a gown has a detachable train, this is easily achieved.  But if you’re drawn to gowns without detachable trains, bustling the gown or the train is the answer. 

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