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

Deferred compensation

An amount that has been earned but is not actually paid until a later date, typically through a payment plan, pension, or stock option plan.

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