Portfolio Effect

Business, Legal & Accounting Glossary

  1. Home
  2. Glossary
  3. Define: Portfolio Effect

Definition: Portfolio Effect

Portfolio Effect
Cite Term
Sources

Full Definition of Portfolio Effect

The change in the value of a portfolio in response to a change in the value of one of the assets in the portfolio, weighted according to what percentage of the portfolio that asset represents. If shares of a certain stock that makes up half of a portfolio and the stock drops by ten percent, the portfolio effect is a value decrease of five percent.

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/portfolio-effect/
Modern Language Association (MLA):
Portfolio Effect. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
April 23, 2024 https://payrollheaven.com/define/portfolio-effect/.
Chicago Manual of Style (CMS):
Portfolio Effect. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/portfolio-effect/ (accessed: April 23, 2024).
American Psychological Association (APA):
Portfolio Effect. PayrollHeaven.com. Retrieved April 23, 2024
, from PayrollHeaven.com website: https://payrollheaven.com/define/portfolio-effect/

Definition Sources

Definitions for Portfolio Effect 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: 16th November, 2021 | 0 Views.