How to Get Rich Quick Without Losing Sleep
Posted: 17 Feb 2018
Date Written: January 30, 1988
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: Suggested Citation