Related Words

Mean-Variance Efficient Portfolio: Related: Markowitz efficient portfolio

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

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

Portfolio Management: Related: Investment management

Passive Portfolio Strategy: A 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 wil . . . 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

Optimal Portfolio: An efficient portfolio most preferred by an investor because its risk/reward characteristics approximate the investor's utility function. A portfolio that maximizes an investor's preferences . . . View Full Definition