Financial futures refer to standardized futures contracts that involve financial assets such as currencies, interest rates, or other financial instruments. These contracts are exchange-traded and play a vital role in hedging and portfolio management.
Portfolio insurance, also known as portfolio protection, involves using financial futures and options markets to safeguard a portfolio's value against market downturns.
A theoretical approach to investment choices based on the assumption that for any given expected return, rational investors will seek to minimize their risk, and for any given level of risk, they will seek to maximize their return.
