Abstract: A diversified composite portfolio can be formed by selecting a bundle of investment securities, correlating them according to a user specific risk tolerance value, and assigning relative portfolio performance metric to the components based on calculated risk tolerance value.

Abstract: The core of the present invention is to provide means and methods for managing an investment portfolio according to an investor's personal financial risk tolerance. In one embodiment this is accomplished by means of two separate and independently managed portfolios, these being a high-risk portfolio and low-risk portfolio, with an appropriate ratio of investment in each as appropriate for a given investor's risk tolerance. In another embodiment this is accomplished by choosing an investment portfolio that optimizes certain metrics related to ROI and the given investor's risk tolerance.