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 create for the measurement of risk. Specifically, explain why standard deviation is a deficient statistic for capturing the essence of risk in a put-protected 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...