Factor Portfolio

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Definition: Factor Portfolio

Factor Portfolio
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Full Definition of Factor Portfolio

Set of several stocks having different degree of risk exposure to different types of economic factors such as changes in interest rates, inflation, and/or oil prices. The stocks are chosen in such a way that the portfolio as a whole is strongly affected by one factor (has a beta close to 1) but is weakly affected by other factors (has a beta close to 0). These portfolios are constructed based on the history and projected behavior of the influencing factors, and usually include both long and short trading positions.

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https://payrollheaven.com/define/factor-portfolio/
Modern Language Association (MLA):
Factor Portfolio. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
April 18, 2024 https://payrollheaven.com/define/factor-portfolio/.
Chicago Manual of Style (CMS):
Factor Portfolio. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/factor-portfolio/ (accessed: April 18, 2024).
American Psychological Association (APA):
Factor Portfolio. PayrollHeaven.com. Retrieved April 18, 2024
, from PayrollHeaven.com website: https://payrollheaven.com/define/factor-portfolio/

Definition Sources

Definitions for Factor Portfolio are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.