Do Health Care Investments Hedge Health Care Liabilities?
Posted: 29 Nov 2007
Date Written: November 2007
We examine whether health care equity investments hedge health care liabilities. In contrast with conventional wisdom, we find them uncorrelated and, thus, poor hedges.
Keywords: portfolio choice, mean-variance optimization, asset allocation, pension, liability-driven investment, non-profit investment, health-care financing
JEL Classification: G11, G23, I10, L30
Suggested Citation: Suggested Citation