Financial Terms / portfolio

Managing Financial Portfolio Assets

A portfolio is a compilation of investments that can range from stocks and bonds to real estate and more!


IRR = (NPV(cost of investment) + PV(cash flow)) / PV(cost of investment)

How do I calculate the portfolio?

To calculate the internal rate of return for a give portfolio, use the formula IRR = (NPV(cost of investment) + PV(cash flow)) / PV(cost of investment). To calculate the market value, add up the total current value of all the investments in the portfolio. To calculate the liquid value, subtract any liabilities associated with the portfolio from the total market value. By using these formulas and a spreadsheet platform, calculating a portfolio's internal rate of return, market value, and liquid value is simple.

What is a financial portfolio?

A financial portfolio is a collection of financial investments like stocks, bonds, commodities, cash, and cash equivalents, as well as their fund counterparts. It can also include private investments, real estate, and other assets. The portfolio is generally managed by a financial professional, but can also be managed by individuals.

What is the purpose of a financial portfolio?

The purpose of a financial portfolio is to help investors achieve their financial goals. This could be anything from saving for retirement, buying a home, funding a child's education, or simply growing wealth over time. A well-diversified portfolio can help manage risk and increase potential returns.

What is portfolio management?

Portfolio management involves selecting, overseeing, and adjusting investments in a portfolio in order to meet specific objectives. It can involve a range of activities, including asset allocation, performance measurement, risk management, and periodic portfolio rebalancing. Portfolio management can be done by individuals, or by professionals who are paid to manage other people's investments.

Key Points

How do I calculate portfolio?
IRR = (NPV(cost of investment) + PV(cash flow)) / PV(cost of investment)
Measuring Risk is Essential
Risk is an inherent part of investing and should be measured in order to maximize profits and minimize losses. As such, measuring risk is an essential part of creating and managing a portfolio. Knowing the potential risks associated with a portfolio can help investors make better decisions and manage their assets more effectively. By understanding the potential risk associated with a portfolio, investors can better anticipate and manage the potential for losses or gains.

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