Efficient frontier and Prime: Difference between pages

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''Portfolio analysis''.  
1. ''Credit rating.''   
The efficient frontier represents portfolios which dominate all other possible portfolios by giving the maximum possible expected return, for the given variance of returns.
 
The strongest credit ratings for shorter term obligations.
 
Prime represents the strongest credit ratings, for the safest investments.
 
 
2.
 
More generally, highly creditworthy.
 
 
3.
 
More broadly still, the highest quality, however evaluated.


Therefore rational investors will always invest only in portfolios which lie on the efficient frontier.


== See also ==
== See also ==
* [[Efficient portfolio]]
* [[Credit]]
* [[Feasible set]]
* [[Credit rating]]
* [[Inefficient portfolio]]
*[[Investment grade]]
* [[NP]]
 
* [[P-1]]
* [[P-2]]
* [[P-3]]
* [[Sub-prime lending]]

Revision as of 14:54, 1 September 2016

1. Credit rating.

The strongest credit ratings for shorter term obligations.

Prime represents the strongest credit ratings, for the safest investments.


2.

More generally, highly creditworthy.


3.

More broadly still, the highest quality, however evaluated.


See also