Which of the following statements is (are) true with respect to insuring a portfolio by way of protective strategy?
I). The strategy requires the sale of put options while owning the underlying asset.
II). If the price of the underlying asset increases dramatically, then an insured portfolio will perform much better than an uninsured portfolio.
III). The cost of portfolio insurance will rise as the volatility of the underlying asset increases.
IV). The upside potential for an insured portfolio is unlimited.