Portfolio insurance can be arranged in several ways an, Ask an Expert

Management Studies

Portfolio insurance can be arranged in several ways. An investor can purchase a call and a protective put to guard against a greater than expected decline in the value of the underlying security. An investor can also buy actual insurance that pays the investors if the investment does not result in an expected return. An investor can even buy insurance that will pay if an investment that the investor did not actually make does not result in the expected return. All of this is perfectly legal.

Why can an investor buy insurance on a risk that the investor does not actually have because the investor did not actually make the investment that is insured? Does this make any sense? Why, or why not?

View complete question

Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92639383

Have any Question?Write your Review or question?

Related Questions in Operation Management

1 which of the following questions would not be answered in

1. Which of the following questions would not be answered in the affirmative by a firm trying to ascertain whether a team is needed in the organization? Are the tasks to be performed independent of one another? Will the ...

The text defines management as ldquothe art of getting

The text defines management as “The art of getting things done through the efforts of other people.” Based on your own experiences, how would you improve or expand upon the definition of management? What characteristics ...

Supporting lecturesreview the following lecturean

Supporting Lectures: Review the following lecture: An Introduction to Health Insurance Introduction: Billing for a procedure may be a complex process. It is important to have a clear picture of the flow of tasks that mak ...

Distinguish between protected and unprotected conduct under

Distinguish between protected and unprotected conduct under the National Labor Relations Act. Choose the side of the employer of employee, and debate the protection afforded to the side you have chosen. What arguments co ...

Shelby hernandez is a second-generation us citizen she grew

Shelby Hernandez is a second-generation U.S. citizen. She grew up around horses and stables. Recently, the owner of a local stable offered to sell Shelby his operation in order to facilitate his retirement. With the help ...

Describe an example in which the organizations rewards

Describe an example in which the organization's rewards system was not in alignment with organizational goals and objectives; for example: firing employees that make mistakes during the problem solving phase is in direct ...

All question must have minimum 1000 wordsdo the

All question must have minimum 1000 words DO THE RESEARCH Company StarBuck 1. Based on the legislation, the regulations and the organizational requirements of your workplace, describe the aspects that might impose a pote ...

1 what are the current challenges in managing people and

1. What are the current challenges in managing people and how can HRM help managers overcome these problems? 2. Explain XPO Logistics Inc. supply chain operations. 3. Personally, if you were a Human Resource Manager, wha ...

Identify the unique characteristics of services relative to

Identify the unique characteristics of services (relative to tangible goods) and list the marketing challenges created by each characteristic. For each characteristic, describe what a firm can do to attempt to counter th ...

1 if you are a business owner who is introducing new

1. If you are a business owner who is introducing new product to the market, newly developed reading glasses that can adjust to distance as you move your head up and down, which pricing strategy will you adopt to launch ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Operation Management Expert