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Portfolio theory |
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Portfolio theorySee: Modern portfolio theory.Portfolio theory Similar MatchesFactor 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. Levered portfolioLevered portfolioInvestment at least partially financed by borrowing. 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. Replicating portfolioReplicating portfolioA portfolio constructed to match an index or benchmark. Diversified portfolioDiversified portfolioA portfolio that includes a variety of assets whose prices are not likely all to change together. In international economics, this usually means holding assets denominated in different currencies. Further SuggestionsMinimum variance portfolioprotected portfolio Passive portfolio strategy Duplicative portfolio Portfolio opportunity set Portfolio internal rate of return Portfolio flow Well diversified portfolio Structured portfolio strategy Portfolio Inefficient portfolio Modern portfolio theory Portfolio turnover rate Excess return on the market portfolio Passive portfolio Portfolio variance Portfolio capital Feasible set of portfolios Complete portfolio Normal portfolio Portfolio Portfolio approach Characteristic portfolio Tilted portfolio Portfolio investment |
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