Investment portfolio

A portfolio can include shares, bonds, funds, cash and other positions. Its composition reflects objectives, constraints, horizon, liquidity and risk capacity;it need not be well diversified or pursue the highest possible return without qualification. Combined risk depends on weights and how outcomes interact, not only the number of holdings. Distinguish a general portfolio from the theoretical market portfolio and from diversification as a management technique. Costs, concentration, leverage and changing exposures should be assessed when interpreting return or risk measures.