Diversification refers to the strategy of spreading investments or business activities across different fields or products to minimize risks and enhance growth.
An Efficient Portfolio of investments represents a combination that maximizes the expected return for a given level of risk or minimizes the level of risk for a given expected return.
A fund family, also known as a family of funds, is a group of mutual funds offered by the same investment company that share similar investment objectives, management, and administrative structures.
An investment portfolio is a collection of various assets such as stocks, bonds, real estate, and other investment instruments owned by an individual or an organization to achieve financial goals.
An investment strategy is a plan to allocate assets among various investment choices such as stocks, bonds, cash equivalents, commodities, and real estate. An effective investment strategy considers factors like interest rates, inflation, economic growth, the investor's age, risk tolerance, available capital, and future capital needs.
The mean return is a key metric in security analysis, representing the expected value or average of all possible returns on investments within a portfolio. It is also used in capital budgeting to determine the mean value of the probability distribution of possible returns.
