portfolio optimization
[pɔːrˈtfoʊ.li.oʊ ˌɑːp.tɪ.mɪˈzeɪ.ʃən]
noun
otimização de portfólio
1. The process of selecting the best combination of financial assets (stocks, bonds, etc.) to maximize returns while minimizing risk according to an investor's objectives and constraints
Portfolio optimization using modern portfolio theory helped the fund manager reduce volatility while maintaining competitive returns.
A otimização de portfólio usando a teoria moderna de portfólio ajudou o gestor de fundos a reduzir a volatilidade mantendo retornos competitivos.
2. The mathematical and computational approach to determining the ideal asset allocation and diversification strategy for an investment portfolio
The algorithm performed portfolio optimization by analyzing historical data and correlation matrices.
O algoritmo realizou otimização de portfólio analisando dados históricos e matrizes de correlação.
Portfolio optimization is a cornerstone concept in both Brazilian and American financial markets. In Brazil, it gained prominence with market liberalization and the growth of private pension funds (fundos de pensão). The term is widely used by Banco Central do Brasil guidelines and by investment professionals in major financial hubs like São Paulo. In the USA, it's fundamental to investment banking, wealth management, and robo-advisory services.
Related Idioms & Phrases
balancing act (figurative reference to portfolio balancing)
putting all eggs in one basket (antonym concept)
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