Portfolio Optimization
Portfolio Optimization is the process of selecting the best portfolio (asset distribution), out of the set of all portfolios being considered, according to some objective.
Benefits
Portfolio optimization selects the best combination of assets to maximize returns based on risk tolerance and goals.
Frequently Asked Questions
What is the process of portfolio optimization?
Portfolio optimization is selecting the best asset distribution to maximize returns according to the investor`s goals and risk tolerance.
What are the objectives of portfolio optimization?
The objectives of portfolio optimization are to maximize returns and minimize risk based on the investor`s goals and risk tolerance.
What are the objectives of portfolio analysis?
The objectives of portfolio analysis are to assess performance, optimize asset allocation, and align investments with financial goals.
Key Takeaway
Portfolio Optimization selects the best combination of assets to maximize returns.