replicating portfolio
- 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
- The financial advisor built a replicating portfolio to track the performance of a specific index.
- The replicating portfolio was structured to mimic a highly desirable, but expensive, asset.
- To safeguard his investment, he created a replicating portfolio that matched the target asset's value fluctuations.
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