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Markowitz Efficient Set of Portfolios

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Markowitz efficient set of portfolios
The collection of all efficient portfolios, which can be graphed as the Markowitz efficient frontier.

Markowitz Efficient Set of Portfolios
Also called the efficient frontier; in Markowitz Portfolio Theory, a 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 level of 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. See also: Markowitz efficient portfolio, Homogeneous expectations assumption.


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