Efficient portfolio: related pages

The theory concerning the value and riskiness of portfolios as opposed to individual securities.

The reduction of risk achieved by buying a portfolio of securities whose returns are not correlated.

A graph showing the best possible return against lowest possible risk.

The relationship between risk and return.

A market in which securities prices reflect all available information.

The difference between the rate of return on a security (or a market or an investment) and the risk free rate of return.

Deciding the proportion of a portfolio that should be invested in each security type, market and sector.