Efficient portfolio

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.

See also

• Efficient frontier
• Inefficient portfolio
• Portfolio
• Return