jim8z3

I am not sure, but I believe that has to do with slope of the line (plot market value on x axis versus asset value on y axis). THe slope of the line (m) is greater than 1 for CPPI and less than 1 for CM. The reference in this case is how the market is moving. So m greater than 1 is you want to buy/sell more than the rate at which the market is moving at. Since CPPI has m  1 it could be saying it is buying insurance, and m