Inefficient portfolio: Difference between revisions
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imported>Doug Williamson m (Spacing 22/8/13) |
imported>Doug Williamson (Classify page.) |
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An inefficient portfolio is one which does not lie on the efficient frontier. | 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. | 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. | ||
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* [[Efficient frontier]] | * [[Efficient frontier]] | ||
* [[Efficient portfolio]] | * [[Efficient portfolio]] | ||
[[Category:Investment]] | |||
Latest revision as of 16:16, 1 July 2022
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.
