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   Partial Collar
   















 

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Partial Collar

Partial Collar for Asset Allocation
Partial collars may be used in asset allocation. A collar covering part of a portfolio might reduce downside exposure in the event of a significant decline, and reduce upside participation if the market for the underlying assets becomes overheated. This is a modest variation on the participating collar, with both legs of the collar covering less than the value of the entire portfolio. See Collar (2) (diagram). See also Participating Range Forward.

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