How to Get Rich Quick Without Losing Sleep

Posted: 17 Feb 2018

Date Written: January 30, 1988

Abstract

Virtually every investor dreams of finding a way to "get rich quick" that does not involve undue risk. Academics tend to be suspicious of any claim that this can be done. This note shows (or does it?) that the goal is possible "in principle". Along the way, it provides some insights into the relationships between the ability to borrow, the Capital Market Line, log-normal price distributions, the Black-Scholes option model, portfolio insurance and the meaning of life.

Keywords: portfolio insurance, get rich quick, option strategies

JEL Classification: G00, G10, G11, G12

Suggested Citation

Ferguson, Robert and Ahmed, Roken, How to Get Rich Quick Without Losing Sleep (January 30, 1988). Financial Analysts Journal, Vol. 44, No. 4, 1988. Available at SSRN: https://ssrn.com/abstract=3113885

Robert Ferguson (Contact Author)

AnswersToGo ( email )

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Roken Ahmed

Independent ( email )

No Address Available
United States

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