Factor portfolioA well-diversified portfolio constructed to have a beta of 1.0 on one factor and a beta of zero on any other factors.
Portfolio variancePortfolio variance
Weighted sum of the covariance and variances of the assets in a portfolio.
Complete portfolioComplete portfolio
The entire portfolio, including risky and risk-free assets.
Portfolio theoryPortfolio theory
See: Modern portfolio theory.
Feasible set of portfoliosFeasible set of portfolios
The collection of all feasible portfolios.
A group of investments held by an institution or individual.The process of choosing which investments go into a portfolio is known as portfolio management or 'asset allocation', and decisions are based on:whether the investment objective is income, growth or a balance of the twohow much risk the investor is prepared to acceptwhat the time horizons of the investor areBased on the answers to these questions (and others) the portfolio manager decides how to allocate funds between different classes of investment (bonds, shares, property), how to diversify between sectors, countries and shares, how much cash to hold, and when to make changes in the composition of the portfolio. If you are managing your own portfolio of investments, exactly the same considerations apply.
Further SuggestionsNormal portfolio
Minimum variance portfolio
Portfolio turnover rate
Portfolio internal rate of return
Portfolio opportunity set
Foreign portfolio investment
Structured portfolio strategy
Well diversified portfolio
Modern portfolio theory
Zero investment portfolio