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A collection of different assets owned by an individual or a firm. A variety of assets may be preferred to holding a single type of asset for several some assets with higher income but poor ’liquidity, and others with lower some assets with higher income but poor liquidity, and others with lower income but more liquidity. Large institutions may also hold a variety of assets because there is not enough of some attractive assets to absorb all their funds or, likely, if they invested all they could in any one asset their holding would be too large relative to the market to be liquid. See also loan portfolio; property portfolio.

Reference: Oxford Press Dictonary of Economics, 5th edt.