Business / Taxes / Portfolio: If you own more than one security, you have an investment portfolio. You build your portfolio by buying additional stock, bonds, annuities, mutual funds, or other investments. Your goal is to increase the portfolio’s value by selecting investments that you believe will go up in price. According to modern portfolio theory, you can reduce your investment risk by creating a diversified portfolio that includes different asset classes and individual securities chosen from different segments, or subclasses, of those asset classes. That diversification is designed to take advantage of the potential for strong returns from at least some of the portfolio’s investments in any economic climate.
Business / Finance / Minimum-Variance Portfolio: The portfolio of risky assets with lowest variance. MORE
Business / Finance / 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 will reflect MORE