Efficient frontier: Difference between revisions
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Therefore rational investors will always invest only in portfolios which lie on the efficient frontier. | Therefore rational investors will always invest only in portfolios which lie on the efficient frontier. | ||
== See also == | == See also == | ||
Revision as of 14:27, 6 May 2016
Portfolio analysis.
The efficient frontier represents portfolios which dominate all other possible portfolios by giving the maximum possible expected return, for the given variance of returns.
Therefore rational investors will always invest only in portfolios which lie on the efficient frontier.
