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. The New York Times Financial Glossary

Financial and business terms. 2012.

Look at other dictionaries:

  • Efficient Frontier — A line created from the risk reward graph, comprised of optimal portfolios. The optimal portfolios plotted along the curve have the highest expected return possible for the given amount of risk …   Investment dictionary

  • 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. Bloomberg Financial Dictionary …   Financial and business terms

  • 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. Any portfolios above the frontier cannot be achieved. Any… …   Financial and business terms

  • efficient asset or efficient portfolio — An asset or portfolio of assets that earns the maximum possible return for its given level of risk. An asset or a portfolio of assets is considered to be efficient if no other asset or portfolio of assets offers a higher expected return with the… …   Financial and business terms

  • efficient asset — or efficient portfolio An asset or portfolio of assets that earns the maximum possible return for its given level of risk. An asset or a portfolio of assets is considered to be efficient if no other asset or portfolio of assets offers a higher… …   Financial and business terms

  • efficient portfolio — efficient asset or efficient portfolio An asset or portfolio of assets that earns the maximum possible return for its given level of risk. An asset or a portfolio of assets is considered to be efficient if no other asset or portfolio of assets… …   Financial and business terms

  • efficient surface — In mean variance skewness analysis, the set of portfolios that result from investor s preference for higher means, lower variance and higher ( positive) skewness. The efficient surface is analogous ( in three dimensions, mean, variance and… …   Financial and business terms

  • Markowitz Efficient Set — A set of portfolios with returns that are maximized for a given level of risk based on mean variance portfolio construction. The efficient solution set to a given set of mean variance parameters (a given riskless asset and a given risky basket of …   Investment dictionary

  • Markowitz efficient set of portfolios — The collection of all efficient portfolios, graphically referred to as the Markowitz efficient frontier. The New York Times Financial Glossary The collection of all efficient portfolios , which can be graphed as the Markowitz efficient frontier.… …   Financial and business terms

  • Production–possibility frontier — In economics, a production–possibility frontier (PPF), sometimes called a production–possibility curve or product transformation curve, is a graph that compares the production rates of two commodities that use the same fixed total of the factors… …   Wikipedia

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