optimization
Definition
Putting together a portfolio in such a way that return is maximized for a given risk level, or risk is minimized for a given expected return level.
 Cite this definition
Related Terms
efficient portfolio, modern portfolio theory
'optimization
' appears in the definitions of these other terms on BusinessDictionary.com maximization, rational choice theory (RCT), rationality, satisficing, concept test, and 
Related Research Articles from the InvestorGuide.com University
Fundamental AnalysisThis investment strategy involves evaluating a stock by examining the company, especially its operations and its financial condition. Here we look at several valuation methods, factoring in price/earnings ratio, PEG, dividend yields, book value, price/sales ratio, and return on equity. 
Short SellingWhat is short selling? Learn how it works and why it happens. Find out about the pitfalls and the potential risk involved with this practice.
Stock StrategiesLearn about various strategies for investing in stocks, including the “buy and hold approach,” analyzing market timing, and estimating a company’s potential for growth.
Featured Sponsor
|
