Chapter 2. Portfolio Management
1. Introduce the subject of portfolio management.
2. Explain the key characteristics of the fund management industry.
Definition: An asset portfolio is a group of assets, such as cash, real estate, retirement funds, equities, fixed income and commodities, that are owned by an individual, company or government. Each asset in the portfolio often has different traits, most importantly anticipated return and expected risk.
Often an individual manages many of his or her own assets. With the purchase of funds or through an employer’s pension scheme, a professional investment manager may manage some assets. An individual may work with a wealth manager in the management of his or her complete ...