Efficiency and Efficient frontier: Difference between pages
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''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 == | == See also == | ||
* [[Efficient | * [[Efficient portfolio]] | ||
* [[ | * [[Feasible set]] | ||
* [[Inefficient portfolio]] | |||
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