Derivatives in Portfolio Management Author:Don M. Chance, Joanne M. Hill, Thomas S.Y. Ho, John Zerolis, David C. Shimko, Maarten Nederlof, Terence E. Burns The appropriate use of derivatives offers investors versatility, risk management, and return enhancement, but improper application of derivatives can be disastrous. In this proceedings, the authors demonstrate the benefits of derivative use and take a practical approach to applying these instruments.