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  • How to protect a portfolio from losses

    U.S. News & World Report - 09/19/2016

    “It is generally much too expensive to buy put options as portfolio insurance. They drag down your returns during regular times and they are far too expensive during bad times,” says Nicole Boyson, associate professor of finance at the D’Amore-McKim School of Business at Northeastern University, referring to variations in the price, or premium, paid for an option.

     The cost is a drag on the portfolio all the time, but gets especially high when the market is more volatile and demand for options rises.
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