Question: 1. There are several risks associated with holding a leveraged investment position. Identify and explain three of these risks. 2. Define the concept of negative

1. There are several risks associated with holding a leveraged investment position. Identify and explain three of these risks.

2. Define the concept of negative gearing and outline the risks of negative gearing for both investors with young families as well as retirees.

3. Discuss the investment products available which allow self-managed super funds to achieve the same results as a leveraged investment, without the need for borrowing.

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