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The portfolio means the gather of stocks,bonds,real estates,and other financial derivatives that the investor or the organization hold.
each financial derivative has its characteristic, different financial derivatives can show different reactions on different market situations, for instance, if all of our combinations are stocks, when the stock market appears vibration, our combination will be greatly subjected to the influence, but if one part of our combine is constituted by the bond, when the stock market descends , bond can make a function of stability, causing our combine not be seriously influenced.
An investor holds hhis property combinations, such stock,bond and mutual fund etc.. The investor tendes to holds more than one kind of stocks, bond or other properties in order to schrink the risk. |
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