Related Words

Markowitz Efficient Portfolio: Also called a mean-variance efficient portfolio, a portfolio that has the highest expected return at a given level of risk.

Mean-Variance Efficient Portfolio: Related: Markowitz efficient portfolio

Markowitz Efficient Frontier: The graphical depiction of the Markowitz efficient set of portfolios representing the boundary of the set of feasible portfolios that have the maximum return for a given level of risk. Any p . . . View Full Definition

Portfolio Insurance: A strategy using a leveraged portfolio in the underlying stock to create a synthetic put option. The strategy's goal is to ensure that the value of the portfolio does not fall below a certain level.

Portfolio Beta: Used in the context of general equities. The beta of a portfolio is the weighted sum of the individual asset betas, According to the proportions of the investments in the portfolio. E.g., if . . . View Full Definition

Portfolio Internal Rate Of Return: The rate of return computed by first determining the cash flows for all the bonds in the portfolio and then finding the interest rate that will make the present value of the cash flows equal . . . View Full Definition

Portfolio Management: Related: Investment management

Portfolio: A combination of assets held for its investment benefits, including financial and non-financial returns. The asset mix is usually varied in kind and size to maintain an acceptable level of r . . . View Full Definition

Portfolio Loan: A loan originated and maintained by the lender and not sold in the secondary mortgage market.

Passive Portfolio: A market index portfolio.