Efficiency and Efficient frontier: Difference between pages

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1. Hedge efficiency, also known as hedge effectiveness.
''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.


2. See Efficient market hypothesis.
Therefore rational investors will always invest only in portfolios which lie on the efficient frontier.


== See also ==
== See also ==
* [[Efficient market hypothesis]]
* [[Efficient portfolio]]
* [[Hedge effectiveness]]
* [[Feasible set]]
* [[Inefficient portfolio]]


[[Category:Long_term_funding]]
[[Category:Corporate_finance]]
[[Category:Risk_frameworks]]

Revision as of 14:19, 23 October 2012

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.

See also