efficient asset or efficient portfolio

efficient asset or efficient portfolio
efficient asset or efficient portfolio
An asset or portfolio of assets that earns the maximum possible return for its given level of risk. An asset or a portfolio of assets is considered to be efficient if no other asset or portfolio of assets offers a higher expected return with the same (or lower) risk or offers a lower risk with the same (or higher) expected return. This concept is part of a financial explanation sometimes called the Markowitz Portfolio Model or the Efficient Frontier Theory. The efficient portfolio is defined mathematically based upon the expected returns, the standard deviation of returns, and the covariance of returns for the portfolio. American Banker Glossary

Financial and business terms. 2012.

Look at other dictionaries:

  • efficient portfolio — efficient asset or efficient portfolio An asset or portfolio of assets that earns the maximum possible return for its given level of risk. An asset or a portfolio of assets is considered to be efficient if no other asset or portfolio of assets… …   Financial and business terms

  • efficient asset — or efficient portfolio An asset or portfolio of assets that earns the maximum possible return for its given level of risk. An asset or a portfolio of assets is considered to be efficient if no other asset or portfolio of assets offers a higher… …   Financial and business terms

  • Asset allocation — is a term used to refer to how an investor distributes his or her investments among various classes of investment vehicles (e.g., stocks and bonds). A large part of financial planning is finding an asset allocation that is appropriate for a given …   Wikipedia

  • Efficient-market hypothesis — Financial markets Public market Exchange Securities Bond market Fixed income Corporate bond Government bond Municipal bond …   Wikipedia

  • Asset Size — The total market value of the securities in a mutual fund s portfolio. Total assets or total net assets are also used to describe a fund s size. When it comes to the size of a mutual fund, bigger is not necessarily better. The key to a fund s… …   Investment dictionary

  • Modern portfolio theory — Portfolio analysis redirects here. For theorems about the mean variance efficient frontier, see Mutual fund separation theorem. For non mean variance portfolio analysis, see Marginal conditional stochastic dominance. Modern portfolio theory (MPT) …   Wikipedia

  • Capital asset pricing model — In finance, the Capital Asset Pricing Model (CAPM) is used to determine a theoretically appropriate required rate of return of an asset, if that asset is to be added to an already well diversified portfolio, given that asset s non diversifiable… …   Wikipedia

  • Infrastructure Asset Management — is the discipline of managing infrastructure assets that underpin an economy, such as roading, water supply, wastewater, stormwater, power supply, flood management, recreational and other assets. In the past these assets have typically been owned …   Wikipedia

  • National Asset Management Agency — Agency overview Formed Late 2009 Jurisdiction Ireland …   Wikipedia

  • Net asset value — (NAV) is a term used to describe the value of an entity s assets less the value of its liabilities. The term is most commonly used in relation to open ended or mutual funds because shares of such funds registered with the U.S. Securities and… …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”