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CFA Level 3
Alternative Investments

Understanding Risks in Commodity Futures

Medium Commodities Investment Commodity Futures

As an investment analyst at a hedge fund, you are tasked with evaluating various commodities investment strategies for the upcoming quarter. Your team is particularly interested in the use of commodity futures as part of its portfolio diversification efforts.

You have gathered data on recent price movements and the relationship of various commodities with economic growth indicators. Based on this analysis, you are exploring which of the following statements regarding commodity futures is accurate.

Hint

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Correct5.4K
% Correct72%