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Hope of earning significantly higher returns

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Reference no: EM131152808

Derivatives (calls, puts, etc.) are financial tools that can be used in many different ways by investors.

Questions to Answer:

A) How do some investors use derivatives to increase their risks significantly in the hope of earning significantly higher returns?

B) How do other investors use derivatives to reduce risk, lowering their expected returns, but, also lowering the standard deviation of those returns?

Reference no: EM131152808

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