Portfolio variance

Portfolio variance
Weighted sum of the covariance and variances of the assets in a portfolio.
Similar financial terms
Efficient portfolio
A portfolio that provides the superior expected return for a given level of risk ...

Portfolio variance
Weighted sum of the covariance and variances of the assets in a portfolio.
Protective put buying strategy ...

Portfolio variance:
[edit] Diversification
An investor can reduce portfolio risk simply by holding combinations of instruments which are not perfectly positively correlated (correlation coefficient <)).

Graph of the lowest possible portfolio variance that is attainable for a given portfolio expected return.
Minimum-variance portfolio
The portfolio of risky assets with lowest variance.

Minimum-variance frontier
Definition: [crh] Graph of the lowest possible portfolio variance that is attainable for a given portfolio Definition: cted+return"expected return.

Minimum-variance frontier
Graph of the lowest possible portfolio variance that is attainable for a given portfolio expected return.
Minimum-variance portfolio
The portfolio of risky assets with lowest variance.

For an investment company, an annualized rate found by dividing the lesser of purchases and sales by the average of portfolio assets.
Portfolio variance
Weighted sum of the covariance and variances of the assets in a portfolio.
Position ...

These minimums may be lowered for buyers participating in an automatic purchase plan Minimum-variance frontier Graph of the lowest possible portfolio variance that is attainable for a given portfolio expected return.

See also: Expected return, Covariance, Systematic risk, Portfolio theory, Trade-off