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

Expected future return

The return that is expected to be earned on an asset in the future. Also called the expected return.

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