"Alternative Investments":Private equity firm

A is correct. Private equity firms look for companies that have strong cash flows and a significant amount of physical assets. These physical assets can be used as security and borrowed against.

B is incorrect because private equity firms look for companies that are inefficiently managed. The goal is to turn them around and thus perform better.

C is incorrect because private equity firms look for companies that have an intrinsic value that exceeds their market value.

B is correct. The three main sources of return for a commodities futures contract are collateral yield, roll yield, and spot price return.

A is incorrect because collateral yield and roll yield are missing. Dividend yield is not a source of return for commodities futures investments.

C is incorrect because spot price return is missing. A high convenience yield results in a situation where the futures price will be below the spot price. In this case, the price of the futures contract rolls up to the spot price as the expiry date of the contract approaches.