Hedged portfolio

 

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Hedged portfolio

A portfolio consisting of a long position in the stock and a long position in the put option on the stock, so as to be riskless and produce a return that equals the risk-free interest rate.



Hedged portfolio

Similar Matches

Excess return on the market portfolio

Excess return on the market portfolio

Difference between the return on the market portfolio and the riskless rate.


Portfolio

Portfolio

The entirety of the financial assets (and usually also liabilities) that an economic agent or group of agents owns.


Replicating portfolio

Replicating portfolio

A portfolio constructed to match an index or benchmark.


Foreign portfolio investment

Foreign portfolio investment

Portfolio investment across national borders and/or across currencies.


Characteristic portfolio

Characteristic portfolio

A portfolio which efficiently represents a particular asset characteristic. For a given characteristic, it is the minimum risk portfolio, with portfolio characteristic equal to 1. For example, the characteristic portfolio of asset betas is the benchmark. It is the minimum risk beta = 1 portfolio.


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