|
|
Minimum variance portfolio |
|
|
|
 Home Site Map Add Term Search About Us Contributors |
Minimum variance portfolioThe portfolio of risky assets with lowest variance.Minimum variance portfolio Similar MatchesPortfolio theoryPortfolio theorySee: Modern portfolio theory. Complete portfolioComplete portfolioThe entire portfolio, including risky and risk-free assets. Tilted portfolioTilted portfolioAn indexing strategy that is linked to active management through the emphasis of a particular industry sector, selected performance factors such as earnings momentum, dividend yield, price-earnings ratio, or selected economic factors such as interest rates and inflation. Well diversified portfolioWell diversified portfolioA portfolio that includes a variety of securities so that the weight of any security is small. The risk of a well-diversified portfolio closely approximates the systematic risk of the overall market, and the unsystematic risk of each security has been diversified out of the portfolio. PortfolioPortfolioA 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 SuggestionsModern portfolio theoryZero investment portfolio Portfolio Normal portfolio Inefficient portfolio Structured portfolio strategy Foreign portfolio investment Excess return on the market portfolio Portfolio capital Characteristic portfolio protected portfolio Portfolio turnover rate Portfolio Portfolio approach Portfolio flow Diversified portfolio Passive portfolio Portfolio variance Portfolio internal rate of return Passive portfolio strategy Portfolio investment Factor portfolio Replicating portfolio Feasible set of portfolios Levered portfolio |
|
|
|