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Portfolio Management Terms

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Portfolio Management Terms

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1. limit order

The more diversified a portfolio is, the smaller its unique risk will be- and also total risk! Subject to news specific to the company that issued securities.The value per share of an investment firm's value on a specific date. Calculated as Net Assets/ # of Shares outstanding.An investor will choose their optimal portfolio from the set of portfolios that either offers maximum expected return for varying levels of risk, or offers minimum risk for varying levels of expected return.Limit price is set by the investors. Can only sell if price is greater than the limit price. Can only buy if the price is less than the limit price.

2. Net Asset Value

Limit price is set by the investors. Can only sell if price is greater than the limit price. Can only buy if the price is less than the limit price.The more diversified a portfolio is, the smaller its unique risk will be- and also total risk! Subject to news specific to the company that issued securities.The value per share of an investment firm's value on a specific date. Calculated as Net Assets/ # of Shares outstanding.An investor will choose their optimal portfolio from the set of portfolios that either offers maximum expected return for varying levels of risk, or offers minimum risk for varying levels of expected return.

3. unique (unsystematic) risk

The value per share of an investment firm's value on a specific date. Calculated as Net Assets/ # of Shares outstanding.An investor will choose their optimal portfolio from the set of portfolios that either offers maximum expected return for varying levels of risk, or offers minimum risk for varying levels of expected return.The more diversified a portfolio is, the smaller its unique risk will be- and also total risk! Subject to news specific to the company that issued securities.Limit price is set by the investors. Can only sell if price is greater than the limit price. Can only buy if the price is less than the limit price.

4. efficient set (frontier)

Limit price is set by the investors. Can only sell if price is greater than the limit price. Can only buy if the price is less than the limit price.An investor will choose their optimal portfolio from the set of portfolios that either offers maximum expected return for varying levels of risk, or offers minimum risk for varying levels of expected return.The value per share of an investment firm's value on a specific date. Calculated as Net Assets/ # of Shares outstanding.The more diversified a portfolio is, the smaller its unique risk will be- and also total risk! Subject to news specific to the company that issued securities.

5. active management

The more diversified a portfolio is, the smaller its unique risk will be- and also total risk! Subject to news specific to the company that issued securities.The value per share of an investment firm's value on a specific date. Calculated as Net Assets/ # of Shares outstanding.Limit price is set by the investors. Can only sell if price is greater than the limit price. Can only buy if the price is less than the limit price.A form of investment management that involves buying and selling financial assets with the objective of earning positive abnormal returns.

6. weak-form market efficiency

The more diversified a portfolio is, the smaller its unique risk will be- and also total risk! Subject to news specific to the company that issued securities.Limit price is set by the investors. Can only sell if price is greater than the limit price. Can only buy if the price is less than the limit price.The value per share of an investment firm's value on a specific date. Calculated as Net Assets/ # of Shares outstanding.A market in which it is impossible to earn abnormal profits (other than by chance) by using past prices to make buying and selling decisions.

7. certainty equivalent return

The more diversified a portfolio is, the smaller its unique risk will be- and also total risk! Subject to news specific to the company that issued securities.The value per share of an investment firm's value on a specific date. Calculated as Net Assets/ # of Shares outstanding.Limit price is set by the investors. Can only sell if price is greater than the limit price. Can only buy if the price is less than the limit price.Guaranteed return that a person would accept rather than taking on higher, but more uncertain returns. Risk premium compensates investors for this additional risk.

8. semi strong- form market efficiency

The more diversified a portfolio is, the smaller its unique risk will be- and also total risk! Subject to news specific to the company that issued securities.The value per share of an investment firm's value on a specific date. Calculated as Net Assets/ # of Shares outstanding.Limit price is set by the investors. Can only sell if price is greater than the limit price. Can only buy if the price is less than the limit price.A level of market efficiency in which all relevant publicly available information is fully and immediately reflected in security prices.

9. capital allocation line

The more diversified a portfolio is, the smaller its unique risk will be- and also total risk! Subject to news specific to the company that issued securities.Limit price is set by the investors. Can only sell if price is greater than the limit price. Can only buy if the price is less than the limit price.The graph displays to investors the return they might possibly earn by assuming a certain level of risk with their investment. The slope of the line is known as the reward-to-variability ratio.The value per share of an investment firm's value on a specific date. Calculated as Net Assets/ # of Shares outstanding.

10. marking to market

Calculating the current market value of the assets and liabilities in the investor's account: used to see if the assets are worth more than minimum collateral. If collateral falls below the minimum collateral, the account is under margined.The value per share of an investment firm's value on a specific date. Calculated as Net Assets/ # of Shares outstanding.Limit price is set by the investors. Can only sell if price is greater than the limit price. Can only buy if the price is less than the limit price.The more diversified a portfolio is, the smaller its unique risk will be- and also total risk! Subject to news specific to the company that issued securities.

11. under margined account

The value per share of an investment firm's value on a specific date. Calculated as Net Assets/ # of Shares outstanding.The more diversified a portfolio is, the smaller its unique risk will be- and also total risk! Subject to news specific to the company that issued securities.When the account's market value of collateral is less than the minimum collateral required, the investor is under margined. Then, broker issues a margin call requesting the investor to deposit cash, pay off part of the loan, or sell some securities.Limit price is set by the investors. Can only sell if price is greater than the limit price. Can only buy if the price is less than the limit price.

12. Attribution Analysis

The more diversified a portfolio is, the smaller its unique risk will be- and also total risk! Subject to news specific to the company that issued securities.Limit price is set by the investors. Can only sell if price is greater than the limit price. Can only buy if the price is less than the limit price.performance-evaluation tool used to analyze the ability of portfolio and fund managers. Attribution analysis uncovers the impact of the manager's investment decisions with regard to overall investment policy, ALLOCATION, SELECTION, AND INTERACTION. Shows if an investor is skilled or simply lucky.The value per share of an investment firm's value on a specific date. Calculated as Net Assets/ # of Shares outstanding.

13. Maintenance Margin Requirement

Limit price is set by the investors. Can only sell if price is greater than the limit price. Can only buy if the price is less than the limit price.Brokers require investors to keep collateral in their accounts that is worth more than the amount of the loan.The value per share of an investment firm's value on a specific date. Calculated as Net Assets/ # of Shares outstanding.The more diversified a portfolio is, the smaller its unique risk will be- and also total risk! Subject to news specific to the company that issued securities.

14. Portfolio turnover rate

The value per share of an investment firm's value on a specific date. Calculated as Net Assets/ # of Shares outstanding.The more diversified a portfolio is, the smaller its unique risk will be- and also total risk! Subject to news specific to the company that issued securities.the ratio of the smaller of purchases or sales during a time period divided by the average total asset value during the period and hence is a measure of how much trading was done during that period.Limit price is set by the investors. Can only sell if price is greater than the limit price. Can only buy if the price is less than the limit price.

15. time-weighted return

Limit price is set by the investors. Can only sell if price is greater than the limit price. Can only buy if the price is less than the limit price.The more diversified a portfolio is, the smaller its unique risk will be- and also total risk! Subject to news specific to the company that issued securities.Uses market value of the portfolio just before each cash flow occurs. Then the periods are geometrically linked to form time-weighted return. Tells how much a dollar invested at the beginning of the period would have grown by the end of the period. Measures security selection ability of money manager. Removes influence on return of when funds are added/ withdrawn.The value per share of an investment firm's value on a specific date. Calculated as Net Assets/ # of Shares outstanding.

16. capital market line

The value per share of an investment firm's value on a specific date. Calculated as Net Assets/ # of Shares outstanding.Efficient portfolios, which plot along the line going from the risk free rate through M (representing the market portfolio), consists of alternative combinations of risk and expected return obtainable by combining the market portfolio with risk free borrowing or lending.Limit price is set by the investors. Can only sell if price is greater than the limit price. Can only buy if the price is less than the limit price.The more diversified a portfolio is, the smaller its unique risk will be- and also total risk! Subject to news specific to the company that issued securities.

17. Capital asset pricing model

The more diversified a portfolio is, the smaller its unique risk will be- and also total risk! Subject to news specific to the company that issued securities.The value per share of an investment firm's value on a specific date. Calculated as Net Assets/ # of Shares outstanding.Specifies the relationship between expected return and beta. The model provides intellectual basis for a number of current practices in the investment industry.Limit price is set by the investors. Can only sell if price is greater than the limit price. Can only buy if the price is less than the limit price.

18. operating expense ratio

The value per share of an investment firm's value on a specific date. Calculated as Net Assets/ # of Shares outstanding.Total annual expenses / average total assets. Measure of what it costs to operate.The more diversified a portfolio is, the smaller its unique risk will be- and also total risk! Subject to news specific to the company that issued securities.Limit price is set by the investors. Can only sell if price is greater than the limit price. Can only buy if the price is less than the limit price.

19. street name

The more diversified a portfolio is, the smaller its unique risk will be- and also total risk! Subject to news specific to the company that issued securities.The registered owner of the security, as far as the original issuer is concerned, is the brokerage firm (NOT the investor). Investor isn't treated differently because of this. Margin purchased should be held in street name.Limit price is set by the investors. Can only sell if price is greater than the limit price. Can only buy if the price is less than the limit price.The value per share of an investment firm's value on a specific date. Calculated as Net Assets/ # of Shares outstanding.

20. market order

Investor is certain that the order will be executed but is uncertain of the price at which the order will be executed. Broker needs to act on best efforts" to obtain the best price possible."The more diversified a portfolio is, the smaller its unique risk will be- and also total risk! Subject to news specific to the company that issued securities.The value per share of an investment firm's value on a specific date. Calculated as Net Assets/ # of Shares outstanding.Limit price is set by the investors. Can only sell if price is greater than the limit price. Can only buy if the price is less than the limit price.

21. market (systematic) risk

The more diversified a portfolio is, the smaller its unique risk will be- and also total risk! Subject to news specific to the company that issued securities.Regardless of the amount of diversification, portfolio returns will always be susceptible to marketwide influences. Diversification leads to an averaging of market risk.The value per share of an investment firm's value on a specific date. Calculated as Net Assets/ # of Shares outstanding.Limit price is set by the investors. Can only sell if price is greater than the limit price. Can only buy if the price is less than the limit price.

22. margin call

Requests that the investor either deposits cash in the account, pays off part of the loan, or sells some securities to pay off part of the loan.The value per share of an investment firm's value on a specific date. Calculated as Net Assets/ # of Shares outstanding.The more diversified a portfolio is, the smaller its unique risk will be- and also total risk! Subject to news specific to the company that issued securities.Limit price is set by the investors. Can only sell if price is greater than the limit price. Can only buy if the price is less than the limit price.

23. closed-end investment companies

Shares are typically traded either on an organized exchange for in the Nasdaq market. If investor wants to buy/ sell, simply place an order with a broker. Has unlimited lives. Dividends and interest are paid to shareholders (as are net capital gains)- but encourage reinvestment.The value per share of an investment firm's value on a specific date. Calculated as Net Assets/ # of Shares outstanding.The more diversified a portfolio is, the smaller its unique risk will be- and also total risk! Subject to news specific to the company that issued securities.Limit price is set by the investors. Can only sell if price is greater than the limit price. Can only buy if the price is less than the limit price.

24. tactical asset allocation

Shifts the percentage held in various asset classes to take advantage of the market. Focus on current market conditions.The value per share of an investment firm's value on a specific date. Calculated as Net Assets/ # of Shares outstanding.Limit price is set by the investors. Can only sell if price is greater than the limit price. Can only buy if the price is less than the limit price.The more diversified a portfolio is, the smaller its unique risk will be- and also total risk! Subject to news specific to the company that issued securities.

25. initial margin requirement

Limit price is set by the investors. Can only sell if price is greater than the limit price. Can only buy if the price is less than the limit price.The minimum percentage of the purchase price that must come from the investor's funds. Determined by the Fed.The more diversified a portfolio is, the smaller its unique risk will be- and also total risk! Subject to news specific to the company that issued securities.The value per share of an investment firm's value on a specific date. Calculated as Net Assets/ # of Shares outstanding.

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25 Questions

❤ If you liked Fatskills, consider supporting us by checking out The Life Manuals You Never Got.

About | Explore | User Guide | Topics | Subjects | Doubt Solver | Career Aptitude Test | Answers | Free Tools | OSHA Basics Quiz | What Should We Know? Privacy | Terms |

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All trademarks, logos and brand names are the property of their respective owners. All company, product and service names used in this website are for identification purposes only. Use of these names, trademarks and brands does not imply endorsement.

About | Explore | User Guide | Topics | Subjects | Doubt Solver | Career Aptitude Test | Answers | Free Tools | OSHA Basics Quiz | What Should We Know?
Privacy | Terms |

Without work one finishes nothing. - Ralph Waldo Emerson
© 2026 Fatskills.com