What is CPPI (Constant Proportion Portfolio Insurance)?

CPPI or Constant Proportion Portfolio Insurance is a dynamic management technique that ensures a minimum guaranteed amount to an investor at the time of maturity

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Next Finance January 2008

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What is CPPI (Constant Proportion Portfolio Insurance)? 29 May 2012 23:12, by jazarrr

In the example where it states: "Third month, 1st case: CAC 40 posted positive 5% returns NPV3 = Non-Risky-Assets1*(1+5%) + Non-Risky-Assets1*(1+2*4.5%/12)" This should be: NPV3 = Risky-Assets1*(1+5.... Same thing for "Third month, 2nd case: CAC 40 posted negative 5% returns NPV3 = Non-Risky-Assets1*(1-5%)+Non-Risky-Assets1*(1+2*4.5%/12) "
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- What is CPPI (Constant Proportion Portfolio Insurance)? 29 May 2012 23:14 , by jazarrr
 
 Same error is made in the French version of the article, I believe.
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 - What is CPPI (Constant Proportion Portfolio Insurance)? 7 June 2012 21:35 , by Next Finance
 
 Thanks for you comments. The changes have been done. It was indeed a typo
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