Efficient portfolio: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Administrator (CSV import) |
imported>Doug Williamson (Expand definition.) |
||
| (5 intermediate revisions by 2 users not shown) | |||
| Line 1: | Line 1: | ||
''Portfolio analysis''. | ''Portfolio analysis''. | ||
An efficient portfolio is one which lies on the efficient frontier. In other words an efficient portfolio has either higher expected return than all others of equal risk, or lower risk for equal expected return. | |||
An efficient portfolio is one which lies on the efficient frontier. | |||
In other words an efficient portfolio has either higher expected return than all others of equal risk, or lower risk for equal expected return. | |||
Efficient portfolios are said to 'dominate' other relatively inefficient portfolios. | Efficient portfolios are said to 'dominate' other relatively inefficient portfolios. | ||
For this reason, efficient portfolios are also sometimes known as ''dominant'' portfolios. | |||
== See also == | == See also == | ||
* [[Efficient frontier]] | * [[Efficient frontier]] | ||
* [[Inefficient portfolio]] | * [[Inefficient portfolio]] | ||
* [[Portfolio]] | |||
* [[Return]] | |||
[[Category:Corporate_financial_management]] | |||
[[Category:Financial_risk_management]] | |||
Latest revision as of 20:54, 29 June 2022
Portfolio analysis.
An efficient portfolio is one which lies on the efficient frontier.
In other words an efficient portfolio has either higher expected return than all others of equal risk, or lower risk for equal expected return.
Efficient portfolios are said to 'dominate' other relatively inefficient portfolios.
For this reason, efficient portfolios are also sometimes known as dominant portfolios.
