Which of the following strategies is also referred to as insured asset allocation? A. Constant proportion portfolio insurance (CPPI). B. Constant mix. C. Concave strategy.
CPPI is the term used by Perold and Sharpe. It is referred to as insured asset allocation and momentum based by Maginn and Tuttle. CPPI is a momentum based strategy that aggressively increases exposure to risky assets in a rising market.
