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QUESTION 2 Very High Risk: Derivatives (commodities) High Risk: Shares Medium risk: Mutual funds or Unit Trust, Low risk: Bond No risk: Cash Deposits The

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QUESTION 2 Very High Risk: Derivatives (commodities) High Risk: Shares Medium risk: Mutual funds or Unit Trust, Low risk: Bond No risk: Cash Deposits The pyramid above shows the financial instruments and level of risk. Based on the information given: Discuss the conceptual background of each instrument and the reasons for the level of risk stated in the pyramid

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