Unmanaged Portfolio


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Unmanaged Portfolio

A portfolio into which a money manager or investor places securities and then does not change those securities for a significant period of time. For example, an investment manager may buy all of the stocks on the Dow Jones Industrial Average and hold them for a period of five or 10 years. Money managers of unmanaged portfolios seek to have a well diversified set of securities. See also: Indexing, Passive investing, Value investing.
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For performance comparison, note that in Exhibit 5 the Sharpe ratios are 0.72, 0.55, 0.78, and 0.48 for unmanaged portfolios consisting of large company stock, growth stocks, value stocks, and intermediate-term government bonds, respectively.