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Investment Dictionary


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Investment Portfolio

 

An investment portfolio is a composition of different investments made on purpose to achieve the highest return at predetermined risk level. Investment portfolio can include all kinds of investments: stocks, bonds, funds, real estate, property, commodities, derivatives, currencies and other. 

 

Well diversified portfolio may achieve better investing results than one separate investment because of different correlation between different assets. Diversification between asset classes, between continents and countries, between sectors can lower the volatility of the portfolio and keep the same return rate.

 

 






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