CPPI has a CONVEX payout curve. How do I remember that? Because it VEXES me. You’re welcome.
I think of it as a rounded V. Concave looks like the opening to a cave.
B/c the curve looks like a V as it minimizes downside risk. V for Vex – i.e. convex
CPPI has a CONVEX payout curve. How do I remember that? Because it VEXES me. You’re welcome.
I think of it as a rounded V. Concave looks like the opening to a cave.
B/c the curve looks like a V as it minimizes downside risk. V for Vex – i.e. convex