Definition of «market portfolio»

The market portfolio refers to a theoretical portfolio that represents the entire stock market. It is composed of all the securities in the market, with each security weighted proportionally based on its market capitalization relative to the total value of all securities. In other words, it includes every publicly traded company's stocks and bonds in their respective proportions of the whole market. The performance of this portfolio is used as a benchmark for evaluating the risk and return characteristics of individual investments or portfolios.

Sentences with «market portfolio»

  • He is responsible for all aspects of the firm's fixed - income and money market portfolios, leading a team of more than a dozen investment professionals. (schwabfunds.com)
  • I didn't feel well today, but my broad market portfolio did better than me. (alephblog.com)
  • We look forward to being a valuable resource in your journey to grow your stock market portfolio with the smartest, most thorough, and best stock analysis tool on the market. (newconstructs.com)
  • (see all sentences)
a b c d e f g h i j k l m n o p q r s t u v w x y z