Printer Friendly
Dictionary, Encyclopedia and Thesaurus - The Free Dictionary
3,894,863,356 visitors served.
forum Join the Word of the Day Mailing List For webmasters
?
Dictionary/
thesaurus
Medical
dictionary
Legal
dictionary
Financial
dictionary
Acronyms
 
Idioms
Encyclopedia
Wikipedia
encyclopedia
?

Efficient Frontier

    0.01 sec.
Efficient frontier
The combinations of securities portfolios that maximize expected return for any level of expected risk, or that minimizes expected risk for any level of expected return. Pioneered by Harry Markowitz.

Markowitz Efficient Frontier
A graphical representation of the set of portfolios giving the highest level of expected return at different levels of risk. Harry Markowitz theorized that each level of risk contains one combination of assets giving the highest expected return. An efficient set of portfolios is represented as a line on a graph with risk as the x-axis and expected return as the y-axis; this representation is the Markowitz efficient frontier. See also: Markowitz Efficient Portfolio, Homogeneous Expectations Assumption.

Efficient Frontier

What Does Efficient Frontier Mean?

A line created from the risk-reward graph, composed of optimal portfolios that reflect various portfolio diversification strategies ranging from a most conservative all-cash portfolio to a most aggressive all-equity portfolio.

Investopedia explains Efficient Frontier

The optimal portfolios plotted along the curve have the highest expected return possible for the given amount of risk.

Related Terms:
Asset Allocation
Diversification
Modern Portfolio TheoryMPT
Risk
Risk-Return Trade-Off



Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content.
?Page tools
Printer friendly
Cite / link
Feedback
Add definition
Mentioned in?  References in periodicals archive?   Financial browser?   Full browser?
 
search ads rose 5 percent from the previous period, according to Efficient Frontier, a search marketing firm in Sunnyvale, California.
Efficient frontier Point two: individual sell and buy decisions should not impact on an overall portfolio.
And if proof were needed that Google is not in trouble, it came last Friday when the US research company Efficient Frontier put out a report saying that Google took 77.
 
 
Efficient Capital Market Hypothesis
Efficient Capital Markets
Efficient cause
Efficient cause
efficient causes
efficient causes
Efficient Chaos-Based Feedback Stream Cipher
Efficient Charge Recovery Logic
Efficient Collaborative Retail Marketing
Efficient Component Pricing Rule
Efficient Consumer Response
Efficient Consumer Response Management
Efficient Data Representation
Efficient Decisions Group
Efficient Deck Hand
Efficient Deployment of Advanced Public Transportation Systems
Efficient Diagnosis Algorithm for Regular Structures
Efficient Distribution Services Pte. Ltd.
Efficient diversification
Efficient Dominance Tree Construction
Efficient Electrically-Small Antenna
Efficient Energy Advisors
Efficient estimator
Efficient Fertilizer Use
Efficient Fiber Optics
Efficient Foodservice Response
Efficient Frontier
Efficient Government Delivery Group
Efficient Health Information Solutions
Efficient Healthcare Consumer Response
Efficient Hydrologic Tracer-Test Design
Efficient Hyper Text Delivery
Efficient Mail Submission & Delivery
Efficient market
Efficient market hypothesis
Efficient market hypothesis
Efficient Market Services, Inc.
Efficient market theory
Efficient market theory
Efficient market theory
Efficient market theory
Efficient market theory
Efficient markets
Efficient Markets Hypothesis
Efficient markets theory
Efficient Networks
Efficient polynomial time approximation scheme
Efficient portfolio
Efficient Portfolio Frontier
Efficient Portfolio Management
Efficient Portfolios
Efficient Pyramid Image Coder
Efficient Reliable High Power Amplifier
Efficient Review
Efficient Second-order Minimization
Efficient Securities Markets Institutional Development
 
Financial Dictionary
?

Terms of Use | Privacy policy | Feedback | Advertise with Us | Copyright © 2012 Farlex, Inc.
Disclaimer
All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.