What is a Market Portfolio?
A market portfolio is a theoretical portfolio in which every available type of asset is included at a level proportional to its market value. Described as a group of investments, a portfolio is owned by one individual or organization. The typical investment portfolio may include a variety of assets, but usually does not include all asset types. However, a market portfolio literally includes every asset that exists in the market. The market value of an investment is described as its current price on the market. The term is also used to refer to the amount for which an asset could presumably be resold. In a market portfolio, investments are held in proportion to their market values in relation to the full value of all included assets. Often, the concept of a market portfolio is discussed in theoretical terms only. For investment purposes, a true market portfolio would need to include every conceivable asset. As such, the market for such a portfolio would be the world market. The market p
