Well diversified portfolio

A portfolio spread out over many securities in such a way that the weight in any security is small. The risk of a well-diversified portfolio closely approximates the systemic risk of the overall market, the unsystematic risk of each security having been diversified out of the portfolio. The New York Times Financial Glossary

Financial and business terms. 2012.

Look at other dictionaries:

  • well-diversified portfolio — A portfolio that includes a variety of securities so that the weight of any security is small. The risk of a well diversified portfolio closely approximates the systematic risk of the overall market, and the unsystematic risk of each security has …   Financial and business terms

  • Diversified Carry Basket — A forex trading strategy in which multiple carry trades are conducted simultaneously in order to limit risk. A diversified carry basket uses diversification to reduce exposure to a particular currency position, and can include both major… …   Investment dictionary

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  • factor portfolio — A well diversified portfolio constructed to have a beta of 1.0 on one factor and a beta of zero on any other factors. Bloomberg Financial Dictionary …   Financial and business terms

  • Granular Portfolio — A type of portfolio that is well diversified across a wide variety of areas, typically with a significant number of holdings. Because these portfolios contain a large number of positions over many areas, they are considered to have a lower… …   Investment dictionary

  • 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

  • United States trust law — Introduction Most law regulating the creation and administration of trusts in the United States is now statutory at the state level. In August 2004, the National Conference of Commissioners on Uniform State Laws created the first attempt to… …   Wikipedia

  • Diversification — A risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique contends that a portfolio of different kinds of investments will, on average, yield higher returns and pose a lower risk… …   Investment dictionary

  • Price Risk — The risk of a decline in the value of a security or a portfolio. Price risk is the biggest risk faced by all investors. Although price risk specific to a stock can be minimized through diversification, market risk cannot be diversified away.… …   Investment dictionary

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