The constant proportion portfolio insurance strategy is based on allocation among two financial assets: a riskless asset, denoted by B, which allows a cash reserve (riskless interest rate denoted by r); a risky asset, denoted by S, which is usually a stock index.
What does CPPI stand for?
CPPI stands for Constant Proportion Portfolio Insurance
This definition appears frequently and is found in the following Acronym Finder categories:
- Business, finance, etc.
See other definitions of CPPI
We have 14 other meanings of CPPI in our Acronym Attic
- Chip Price/Performance Index
- Chlorophyll Phytyl Chain Photodegradation Index
- Church Planting Progress Indicators
- Civic Participation and Public Information (Rhode Island)
- Cognitive Preference Pattern Indicator
- Commercial Property Price Index
- Commission for Patient and Public Involvement (UK)
- Common Principled Programme Implementation
- Communications Port Programming Interface
- Concrete Protection Products Inc.
- Consultative Panel on Public Information (United Nations)
- Consulting Psychologists Press, Inc. (Myers-Briggs trademark owner)
- Contractors Professional Protective Insurance
- Coordinated Primary Prevention Initiative
- Crystal Preparation Prime Item
- Cumulative Property Performance Index
- China Plastics Processing Industry Association
- Canadian Pollution Prevention Information Clearinghouse
- China Pacific Property Insurance Company
- Commission for Patient and Public Involvement in Health (UK)
Samples in periodicals archive:
Farouze's charge was to provide a 100% capital guarantee on the funds using constant proportion portfolio insurance (CPPI) techniques, which mimic options hedging by constantly re-balancing the underlying assets.
CHAPTER 5: Constant Proportion Portfolio Insurance.