Passive portfolio strategy

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 all available information in the price paid for securities, and therefore, does not attempt to find mispriced securities. Related: active portfolio strategy

Financial and business terms. 2012.

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  • 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 all available information in the price paid… …   Financial and business terms

  • Active portfolio strategy — A strategy that uses available information and forecasting techniques to seek a better performance than a portfolio that is simply diversified broadly. Related: passive portfolio strategy Actuals The physical commodity underlying a futures… …   Financial and business terms

  • active portfolio strategy — A strategy that uses available information and forecasting techniques to seek better performance than a buy and hold portfolio. Related: passive portfolio strategy. Bloomberg Financial Dictionary …   Financial and business terms

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  • Dedicated Portfolio — A passive form of portfolio management that involves the matching of future cash inflows with future liabilities. The process of dedicating a portfolio may be used as an alternative to multiperiod immunization, which reduces the level of interest …   Investment dictionary

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