marktportefeuille
The marktportefeuille, or market portfolio, is a theoretical construct in modern portfolio theory and the Capital Asset Pricing Model (CAPM). It represents the aggregate portfolio of all investable assets weighted by their market values. In essence, it embodies the overall risk and return of the entire market, and serves as a benchmark for evaluating individual assets and portfolios.
In practice, the marktportefeuille is used as a reference that combines all risky assets with a risk-free
Composition and proxies: since no single investable portfolio truly includes every asset, in practice investors use
Significance and limitations: the marktportefeuille is a theoretical benchmark that underpins the CAPM’s prediction of asset
Origin: the concept builds on Harry Markowitz’s modern portfolio theory and was developed further by Sharpe,