Investments and Portfolio Management

Investments and portfolio management in financial economics involve the process of allocating resources, typically money, into different financial assets like stocks, bonds, or real estate to generate returns over time. A portfolio is a collection of these investments, and effective management aims to balance risk and reward based on individual goals and market conditions. This means diversifying holdings to reduce potential losses, analyzing market trends for informed decisions, and adjusting the portfolio as circumstances change to ensure optimal performance and meet financial objectives.