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Management
'''Portfolio management''' involves deciding what assets to include in the portfolio, given the goals of the portfolio owner and changing economic conditions. Selection involves deciding what assets to purchase, how many to purchase, when to purchase them, and what assets to divest. These decisions always involve some sort of performance measurement, most typically expected return on the portfolio, and the risk associated with this return (i.e. the standard deviation of the return). Typically the expected return from portfolios of different asset bundles are compared.The unique goals and circumstances of the investor must also be considered. Some investors are more risk averse than others.
Mutual fund have developed particular techniques to optimize their portfolio holdings. See fund management for details.