Bundling together a portfolio of mortgages and slice them into tranches is an example of financial engineering. The tranches are a form of financial derivative. Which of the following is NOT true.

Financial derivatives can be legitimate financial assets and have legitimate purposes.

We should not invest in financial derivatives under any circumstance.

Financial derivatives can be very risky and have been called "financial weapons of mass destruction."

Financial derivatives can be complex assets that are difficult to understand.