The Overuse of Portfolio Insurance in the Market May Be

question 54

Multiple Choice

The overuse of portfolio insurance in the market may be dangerous because:

• A)a large amount of selling may take place simultaneously.
• B)a small amount of arbitraging may take place simultaneously.
• C)in a down market, the insurance companies may not be able to pay for the losses.
• D)All of the above

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Definitions:

Identifier Field

In databases, a specific column or attribute used to uniquely determine a record or row in a table, serving as a primary key or unique identifier.

Foreign Key

A column or set of columns in a relational database table that provides a link between data in two tables, used to maintain the integrity of the data by ensuring that relationships between tables remain consistent.

Primary Key

An attribute or set of attributes that uniquely identifies a record in a database table.

Expected Graduation Year

The year in which a student is anticipated to complete their academic degree program.