Inefficient portfolio: Difference between revisions
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imported>Doug Williamson m (Spacing 22/8/13) |
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''Portfolio analysis''. | ''Portfolio analysis''. | ||
An inefficient portfolio is one which does not lie on the efficient frontier. In other words an inefficient portfolio has either lower expected return than another of equal risk, or else greater risk for equal expected return compared with another - more efficient - portfolio. | |||
An inefficient portfolio is one which does not lie on the efficient frontier. | |||
In other words an inefficient portfolio has either lower expected return than another of equal risk, or else greater risk for equal expected return compared with another - more efficient - portfolio. | |||
Inefficient portfolios are said to be 'dominated' by at least one other relatively more efficient portfolio. | Inefficient portfolios are said to be 'dominated' by at least one other relatively more efficient portfolio. | ||
== See also == | == See also == | ||
* [[Efficient frontier]] | * [[Efficient frontier]] | ||
* [[Efficient portfolio]] | * [[Efficient portfolio]] | ||
Revision as of 15:35, 22 August 2013
Portfolio analysis.
An inefficient portfolio is one which does not lie on the efficient frontier.
In other words an inefficient portfolio has either lower expected return than another of equal risk, or else greater risk for equal expected return compared with another - more efficient - portfolio.
Inefficient portfolios are said to be 'dominated' by at least one other relatively more efficient portfolio.
