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Portfolio theory |
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Portfolio theorySee: Modern portfolio theory.Portfolio theory Similar MatchesPortfolioPortfolioA 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. Portfolio turnover ratePortfolio turnover rateFor an investment company, an annualized rate found by dividing the lesser of purchases and sales by the average of portfolio assets. Portfolio investmentPortfolio investmentThe acquisition of portfolio capital. Usually refers to such transactions across national borders and/or across currencies. Portfolio capitalPortfolio capitalFinancial assets, including stocks, bonds, deposits, and currencies. 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. Further SuggestionsPortfolio internal rate of returnReplicating portfolio Passive portfolio Minimum variance portfolio Portfolio Zero investment portfolio Feasible set of portfolios Factor portfolio Hedged portfolio Characteristic portfolio Complete portfolio Passive portfolio strategy Select ten portfolio Structured portfolio strategy Duplicative portfolio Inefficient portfolio Normal portfolio protected portfolio Well diversified portfolio Portfolio flow Excess return on the market portfolio Foreign portfolio investment Levered portfolio Portfolio Modern portfolio theory |
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