Patent ID: 7120598

Claim:
A computer-implemented method for managing an investment portfolio, said method comprising: determining a feasible loss in value of a first asset; determining an allocation between said first asset and a second asset based on said feasible loss in value of said first asset; and determining an interest rate for said second asset; wherein: said allocation yields a protected minimum future value for said investment portfolio at a conclusion of said holding period, and is such that appreciation of said second asset over said holding period is sufficient to generate said protected minimum future value and offset said feasible loss in value of said first asset; said protected minimum future value is at least a given fraction of a highest marked-to-market value of achieved by said investment portfolio; and said determining said allocation between said first asset and said second asset employs a formula: R =( FV/CV −(1 −x ))/((1 +r ) m −(1 −x )) where: R=a fractional allocation of said total investment portfolio to said second asset, x=a fractional representation of said feasible loss in value of said first asset, FV=said protected minimum future value, CV=an amount available for investment, r=said interest rate for said second asset, and m=a number of years from a date of investment to a date corresponding to said future value.