# Discuss the difficulties that having options in a security portfolio create for the measurement of portfolio risk. Specifically, explain why standard deviation is a deficient statistic for capturing the essence of risk in a put-protected portfolio. How could the standard deviation statistic be modified to account for this concern?

Discuss the difficulties that having options in a security portfolio create for the measurement of portfolio risk. Specifically, explain why standard deviation is a deficient statistic for capturing the essence of risk in a put-protected portfolio. How could the standard deviation statistic be modified to account for this concern?

Portfolio

A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...

Portfolio

A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...

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**Related Book For**

## Investment Analysis and Portfolio Management

10th Edition

**Authors:** Frank K. Reilly, Keith C. Brown

**ISBN:** 978-0538482387