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5 When discussing investment banks, we said that they will use derivative securities to hedge, which is a form a financial engineering. What is a

5

  1. When discussing investment banks, we said that they will use derivative securities to hedge, which is a form a financial engineering. What is a derivative security and define what they mean by the term HEDGE.
  2. Explain to me the difference between a ETF and a mutual Fund
  3. How are finance companies able to compete against commercial banks?

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