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Passive portfolio strategy |
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Passive portfolio strategyA strategy that involves minimal expectational input, and instead relies on diversification to match the performance of some market index. A passive strategy assumes that the marketplace will reflect all available information in the price paid for securities, and therefore, does not attempt to find mispriced securities. Related: Active portfolio strategy.Passive portfolio strategy Similar MatchesDuplicative portfolioDuplicative portfolioMainly applies to derivative products. Basket of stocks that imitates the price movement of another set of securities (e.g., S&P 500 index). Foreign portfolio investmentForeign portfolio investmentPortfolio investment across national borders and/or across currencies. Normal portfolioNormal portfolioA customized benchmark that includes all the securities from which a manager normally chooses, weighted as the manager would weight them in a portfolio. Portfolio opportunity setPortfolio opportunity setThe expected retur../../finance-glossary/standard deviation pairs of all portfolios that can be constructed from a given set of assets. 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. Further SuggestionsStructured portfolio strategyLevered portfolio Excess return on the market portfolio Modern portfolio theory Portfolio variance Portfolio turnover rate Portfolio flow Hedged portfolio Tilted portfolio Portfolio theory Minimum variance portfolio Characteristic portfolio Replicating portfolio Complete portfolio Select ten portfolio protected portfolio Portfolio capital Portfolio portfolio Passive portfolio Factor portfolio Zero investment portfolio Portfolio investment Portfolio internal rate of return Inefficient portfolio |
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