Nikotilar Because this is the first-ever securitization of charge-card receivables, there are no directly comparable benchmarks that can help in pricing. Why was Ford distributing such a significant amount of anddre at this particular point in time? Insurance ; Risk and Uncertainty ; Insurance Industry. The company has a strong social mission to improve the economic situation of these women and wants to grow rapidly. Andre F.
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One must decide how to rebalance the portfolio in response to such changes. Dynamic strategies are explicit rules for doing so. Different strategies will produce different risk and return characteristics. They have a minimum return proportional to the amount allocated to bills and an upside proportional to the amount allocated to stocks. Their performance is linearly related to the performance of the equity market. Strategies that sell stocks as the market falls and buy stocks as the market rises represent the purchase of portfolio insurance.
Particular examples are constant-proportion portfolio insurance and option-based portfolio insurance. These strategies have better downside protection and better upside potential than buy-and-hold strategies.
They do worse in relatively trendless, volatile markets. Constant-mix strategies—holding a constant fraction of wealth in stocks—buy stocks as the market falls and sell them as it rises. These and other such strategies effectively represent the sale of portfolio insurance. They have less downside protection than, and not as much upside as, buy-and-hold strategies.
They do best in relatively trendless but volatile markets. Only buy-and-hold strategies can be followed by all investors. Perold is cofounder, managing partner, and chief investment officer of HighVista Strategies. Previously, he was the George Gund Professor of Finance and Banking at Harvard Business School, where he also served as senior associate dean and chair of the finance faculty. Professor Perold won numerous awards for his research and teaching in the fields of investment management and the capital markets.
Professor Perold received a BSc hons. William F.
Dynamic Strategies for Asset Allocation