Which is the correct interpretation of the statement

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Problem 1: "A commodity future index is designed to be unleveraged." Which one of the following is the correct interpretation of this statement?

A. None of them is right

B. The exaggerating effect of leverage on the total return of commodity exposure is removed in a commodity future index

C. A commodity future index takes into account the part of the return earned as a result of leverage usage

D. An investor cannot borrow money to invest in a commodity future index

Reference no: EM132993485

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