2I - Chp 7&8

How to build a bulletproof investment portfolio?

The art and science of making decisions about investment mix and policy, matching investments to objectives, asset allocation for individuals and institutions and balancing risk against performance.

It seeks to optimize the risk/return profile of an investor by investing in a mix of assets that have low correlation to each other.

This is a method used to return a portfolio to its original target allocation at annual intervals.

A grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents.

It is also known as inflation risk.

He recommends the two-fund portfolio strategy.

It refers to an investment by an investor in an enterprise in another economy, resulting in lasting interest with significant influence over the overseas enterprise.

It refers to the investment of a firm or an individual in business interests located in a country outside their own.

It measures the amount of money flowing from one country to other countries over one monetary year.