How is a portfolio defined in finance?

A portfolio is defined in finance as a collection of financial investments, which can include a variety of asset types such as stocks, bonds, real estate, and other securities. This aggregation allows investors to manage their investment risk and return effectively by diversifying their holdings across different asset classes and sectors. By holding a range of investments, individuals can reduce the impact of any single asset's performance on the overall value of their portfolio.

The other choices do not accurately encapsulate the concept of a portfolio. The total value of all assets owned by an individual refers more to net worth rather than a portfolio. A strategy for minimizing investment risks could be one part of managing a portfolio, but it does not define what a portfolio itself is. Cash flow generated from a business operation is related to operational finance and does not pertain to the definition of a portfolio in the context of investment.