Risk & Portfolio Management
2 terms
Portfolio
Risk & Portfolio Management
₹
The complete collection of investments held by an individual or institution, considered as one unit.
Portfolio Return = Sum of (Weight of each Holding x Return of that Holding)
Position Sizing
Risk & Portfolio Management
shares
Deciding how much capital to commit to a single position, based on the loss that would be acceptable if it went wrong.
Position Size = (Account Value x Risk per Trade %) / Risk per Share