Related Words

Replicating Portfolio: A portfolio constructed to match an index or benchmark.

Portfolio Opportunity Set: The expected return/standard deviation pairs of all portfolios that can be constructed from a given set of assets.

Portfolio R2: Used in the context of general equities. Number between 0 and 1 that measures the strength of correlation of movement between the portfolio/stock and the index. Indeed, the R2 is the square . . . View Full Definition

Portfolio Restructuring: Applies to derivative products. Recomposition of a portfolio's asset mix by selling off undesired asset types (equities, debt, or cash) or specific securities within that class, while simult . . . View Full Definition

Portfolio Manager: A portfolio manager is responsible for overseeing a collection of investments, either for an institution — such as a mutual fund, brokerage firm, insurance company, or pension fund — or for . . . View Full Definition

Portfolio Management: Related: Investment management

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