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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 MatchesProtected portfolioProtected portfolioA term used by the London Stock Exchange to denote that a transaction was reported as a protected portfolio, or was as a result of a worked principle agreement for a portfolio transaction. 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. 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 flowPortfolio flowThe sale or purchase of financial assets across countries. Modern portfolio theoryModern portfolio theoryPrincipals underlying the analysis and evaluation of rational portfolio choices based on risk-return trade-offs and efficient diversification. Further SuggestionsPassive portfolioForeign portfolio investment portfolio Portfolio variance Inefficient portfolio Structured portfolio strategy Portfolio Portfolio Factor portfolio Levered portfolio Zero investment portfolio Minimum variance portfolio Feasible set of portfolios Duplicative portfolio Portfolio theory Replicating portfolio Select ten portfolio Well diversified portfolio Portfolio investment Hedged portfolio Complete portfolio Excess return on the market portfolio Portfolio opportunity set Portfolio internal rate of return Portfolio turnover rate |
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