Efficient frontier A graph representing a set of portfolios that maximize expected return at each level of risk.
Efficient Frontier
A line created from the risk-reward graph, comprised of optimal portfolios.
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Efficient Frontier - A set of portfolios that maximize expected returns at each level of portfolio risk. Each point on the Efficient Frontier curve represents a portfolio that achieves the highest return at a given level of risk.
Efficient frontier
The combinations of securities portfolios that maximize expected return for any level of expected risk, or that minimizes expected risk for any level of expected return. Pioneered by Harry Markowitz.
Efficient frontier The point at which a portfolio is diversified in such a way as to provide the maximum possible return with the least amount of risk.
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Markowitz efficient frontier
The graphical depiction of the Markowitz efficient set of portfolios representing the boundary of the set of feasible portfolios that have the maximum return for a given level of risk.
efficient frontier The efficient frontier graph correlates a portfolio's risk profile to possible... Efficient Market Theory The theory that all market participants receive and act on all of the relevant...
Related: Naive diversification Markowitz efficient frontierThe graphical depiction of the Markowitz efficient set of portfolios representing the boundary of the set of feasible portfolios that have the maximum return for a given level of risk.
Out of a universe of risky assets, an efficient frontier of optimal portfolios can be constructed. Each portfolio on the efficient frontier offers the maximum possible expected return for a given level of risk.
Learn how to follow the efficient frontier to better returns. Modern Portfolio Theory Stats Primer
See why investors today still follow this set of principles to reduce risk and increase returns through diversification.
MPT involves the concept of the efficient frontier on which the market portfolio sits.
Although a different allocation might give a lower volatility, it will do so at the expense of returns, because the market portfolio is on the efficient frontier.
" If an investment lies on the efficient frontier, it is considered "optimal" or "advantageous. According to academic theory, it is not possible to make fruitful investments on stock that plots consistently above the frontier.
 See also: Portfolio, Investment, Return, Risk, Market
  
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