When an investment's value is based upon some underlying asset, it is known as a:

When an investment's value is based upon some underlying asset, it is known as a:

When an investment's value is based upon some underlying asset, it is known as a:




A) swap.

B) hedge fund.

C) separate account.

D) derivative.



Answer: This is why the term is used - the value is derived from some other asset.


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