This is the class blog for Busn170 taught at FCC 2008. All students are required to make at least one meanningful post or comment per week.

Sunday, December 21, 2008

What is Portfolio?

In corporate strategy, in which 'decide' or meditate on what kind of business we're to involve, or what you want it 'to be' (doesn't this last phrase remind you of some classical notion?) etc, we have to keep analyzing our portfolio? What the h*** is it, I was just wondering. Here is the answer I have extracted from the source.

Important: In finance, a portfolio is an appropriate mix of or collection of investments held by an institution or a private individual.

Holding a portfolio is part of an investment and risk-limiting strategy called diversification. By owning several assets, certain types of risk (in particular specific risk) can be reduced. The assets in the portfolio could include stocks, bonds, options, warrants, gold certificates, real estate, futures contracts, production facilities, or any other item that is expected to retain its value.

Less Important: In building up an investment portfolio a financial institution will typically conduct its own investment analysis, whilst a private individual may make use of the services of a financial advisor or a financial institution which offers portfolio management services.

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