Eeckhoudt, Louis; Meyer, Jack; Ormiston, Michael B - In: Journal of Risk and Uncertainty 14 (1997) 1, pp. 25-39
Holding more of the riskless asset and insuring the risky asset are two ways to reduce portfolio risk. These methods can be employed jointly. As a result, the amount of insurance selected to indemnify against possible losses from holding a risky asset depends, in general, on the quantities of...