Adequacy of coverage

Definition:

A test that measures the extent to which the value of an asset is protected from potential loss either through insurance or hedging.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

No Protest

Instructions given to a collecting bank not to protest a specific item in the event of non payment or non acceptance.

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