Explain why investors may be attracted to high-risk investments such as exchange-traded derivatives, global funds, and other complex investment vehicles.

High-risk investments, such as global funds and exchange-traded products, can be attractive to investors because of the potential return on investment. These vehicles offer greater potential returns in a shorter time period than conventional stocks and bonds. The use of derivatives allows investors to bet on future asset performance without having to own them, which could lead to higher profits in case the movement predicted occurs. Global funds also provide access to markets previously inaccessible due to geographical restrictions, while providing diversification advantages since different regions experience different economic cycles.

Structured notes and swaps, which combine debt with equity in various ways, may be appealing to investors who are looking to maximize returns. These instruments can generate yields that exceed what is possible from regular investing alone. These investments come with risks of their own, however those that are willing to take on the risk associated with volatile market conditions can enjoy gains much greater than they would have been able to achieve with less volatile investment over the same period.