Question

A cppi portfolio has a floor value of $4 million in stocks, a market value of $7 million, and a multiplier of 1.5. If the value of the portfolio increases 20%, the investment in stocks should be

a. $4.4 million

b. $4.8 million

c. $5.4 million

d. $6.6 million

Answer 1

Answer:

Ek operator purpose has a floor of value of million 4.4 dollar million in stop a market value $7 million and a multiplayer of 1.5 if the value of the portlet is is increased 20 percentage the the interest in stocks should be e 6.6 dollar million