Homogeneous expectations assumption

Definition:

An assumption of Markowitz portfolio construction that investors have the same expectations with respect to the inputs that are used to derive efficient portfolios: asset returns, variances, and covariances.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Troubled assets

In context of the Troubled Asset Relief Program, the term 'troubled asset' is defined as: (A) Mortgages, mortgage backed securities, and instruments derived from these that were originated on or... Read More

Subscribe to the Term of the Day via email Get the Term of the Day in your inbox!


Create your free portfolio