_____s the security which derives its value from the underlying asset.*ReturnDerivativeRiskInvestmentPortfolio

The term you are looking for is "Derivative."

Derivatives are financial instruments whose value is based on the price of an underlying asset. Common underlying assets can include stocks, bonds, commodities, currencies, interest rates, and market indexes. They are used for various purposes including hedging risk, speculation, and increasing leverage in investments.

In finance, derivatives can take several forms, including options, futures, and swaps. For example, a futures contract obligates the buyer to purchase, and the seller to sell, an asset at a predetermined future date and price. Options give the holder the right, but not the obligation, to buy or sell an asset at a specified price before a certain date.

Understanding derivatives is crucial for managing investment portfolios effectively, as they carry their own risks and rewards that need to be carefully evaluated in the context of the overall investment strategy.