market portfolio

Definition

A concept used in Modern Portfolio Theory which refers to a hypothetical portfolio containing every security available to investors in a given market in amounts proportional to their market values.

Use market portfolio in a sentence

You should try and make sure that you keep up with your market portfolio and always look for new ways to improve it.

​ Was this Helpful? YES  NO 11 people found this helpful.

While no one held a true market portfolio, the idea in principal made a lot of sense. It would be easier to identify trends and issues if a market portfolio was held.

​ Was this Helpful? YES  NO 5 people found this helpful.

A market portfolio can help someone see every security available in their market (or a given market) and the proportional share that each security has of the full market's value.

​ Was this Helpful? YES  NO 6 people found this helpful.

Show more usage examples...

Browse Definitions by Letter: # 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
market return benchmark error