Portfolios A portfolio is a collection of assets An asset's risk and return are important to how the stock affects the risk and return of the portfolio The risk-return trade-off for a portfolio is measured by the portfolio expected return and standard deviation,just as with individual assets 88 Portfolios n A portfolio is a collection of assets n An asset’s risk and return are important to how the stock affects the risk and return of the portfolio n The risk-return trade-off for a portfolio is measured by the portfolio expected return and standard deviation, just as with individual assets