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Modern portfolio theory |
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Modern portfolio theoryPrincipals underlying the analysis and evaluation of rational portfolio choices based on risk-return trade-offs and efficient diversification.Modern portfolio theory Similar MatchesPortfolioPortfolioThe entirety of the financial assets (and usually also liabilities) that an economic agent or group of agents owns. Portfolio flowPortfolio flowThe sale or purchase of financial assets across countries. Factor portfolioFactor portfolioA well-diversified portfolio constructed to have a beta of 1.0 on one factor and a beta of zero on any other factors. Characteristic portfolioCharacteristic portfolioA portfolio which efficiently represents a particular asset characteristic. For a given characteristic, it is the minimum risk portfolio, with portfolio characteristic equal to 1. For example, the characteristic portfolio of asset betas is the benchmark. It is the minimum risk beta = 1 portfolio. Portfolio approachPortfolio approachAn approach to explaining exchange rates that stresses their role in changing the proportions of different currency-denominated assets in portfolios. The exchange rate adjusts to equate these proportions to desired levels. Further SuggestionsComplete portfolioWell diversified portfolio Diversified portfolio Hedged portfolio Portfolio investment Excess return on the market portfolio Portfolio theory Portfolio variance Passive portfolio Select ten portfolio Portfolio internal rate of return Portfolio turnover rate Replicating portfolio protected portfolio Feasible set of portfolios Structured portfolio strategy Passive portfolio strategy Duplicative portfolio Zero investment portfolio Portfolio opportunity set portfolio Tilted portfolio Normal portfolio Portfolio Portfolio capital |
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