NakedPuts2011

Nitz25 Wrote:
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> Future cash payments for children's college
> tuition
> vs.
> Future cash payments for policy holder's annuity
> payouts
>
> Both are future liabilities for which you could
> create a separate portfolio of conservative fixed
> income assets with matched durations. CFA says
> one approach is a behavioral bias and the other is
> a institutional best practice.
>
> That's the similarity and the contradiction.

EXACTLY!