Portfolio Construction

Portfolio

Definition

What is Portfolio?

The complete collection of investments owned by an investor or managed under one mandate.

Example in practice

A portfolio may contain shares, bonds, cash, property, and private investments.

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The process of selecting and combining investments to meet return, risk, liquidity, and time-horizon objectives.

A long-term target mix of asset classes based on an investor's objectives and constraints.

A temporary deviation from long-term asset weights to exploit perceived opportunities or manage risk.

A statistic ranging from minus one to plus one that describes how two return series move together.

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