replicating portfolio

Definition of "replicating portfolio"
  1. A collection of assets that mirrors the value fluctuations of a specific target asset, often created with certain amounts of the underlying asset and bonds
How to use "replicating portfolio" in a sentence
  1. The financial advisor built a replicating portfolio to track the performance of a specific index.
  2. The replicating portfolio was structured to mimic a highly desirable, but expensive, asset.
  3. To safeguard his investment, he created a replicating portfolio that matched the target asset's value fluctuations.

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