The change in the value of a portfolio in response to a change in the value of one of the assets in the portfolio, weighted according to what percentage of the portfolio that asset represents. If shares of a certain stock that makes up half of a portfolio and the stock drops by ten percent, the portfolio effect is a value decrease of five percent.
Related information about portfolio effect:
- Portfolio Effect - Financial Dictionary - The Free Dictionary
The reduction in the value of a portfolio relative to the reduction in value of the individual assets represented in that portfolio. The portfolio effect is weighted for ...
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3.1 Redundancy hypothesis; 3.2 Portfolio effect. 4 Economics .... A third explanation, known as the portfolio effect, compares biodiversity to stock holdings , where ...
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portfolio effect definition: A reduction in the variation of returns on a combination of assets compared with the average of the variations of the individual assets.
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Definition of portfolio effect: The change in the value of a portfolio in response to a change in the value of one of the assets in the portfolio, weighted according to ...
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Such variance dampening within communities is referred to as a portfolio effect and is analogous to the effects of asset diversity on the stability of financial ...
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Jun 3, 2010 ... Such variance dampening within communities is referred to as a portfolio effect and is analogous to the effects of asset diversity on the stability ...
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Key words: dependence models, Normal copula, portfolio effect, capital allocation. ... In other words, what is the "portfolio effect" -- the diversification benefit of ...
- Definition of the Portfolio Effect | eHow.com
Definition of the Portfolio Effect. The portfolio effect is an investment term. When you add more diversity to your investment portfolio, you take on less risk.