Comparing a constant mix strategy and a CPPI strategy, in a rising market
A) both the constant mix and CPPI strategy buy stocks
B) both the constant mix and CPPI strategy sell stocks
C) the constant mix strategy sells stock while the CPPI strategy buys stock
D) the constant mix strategy buys stock while the CPPI strategy sells stock

Question

Quizplus · Accepted Answer

In a rising market, a constant mix strategy sells stocks to maintain a fixed asset allocation, while a CPPI strategy buys more stocks to increase exposure as the cushion grows.

Comparing a Constant Mix Strategy and a CPPI Strategy, in a Rising