efficient portfolio

Efficient portfolio

A portfolio that provides the greatest expected return for a given level of risk (i.e., standard deviation), or, equivalently, the lowest risk for a given expected return.

Markowitz Efficient Portfolio

In Markowitz Portfolio Theory, a portfolio with the highest level of return at a given level of risk. One who carries such a portfolio cannot further diversify to increase the expected rate of return without accepting a greater amount of risk. Likewise one cannot decrease his/her exposure to risk without proportionately decreasing the expected return. A Markowitz efficient portfolio is determined mathematically and plotted on a chart with risk as the x-axis and expected return as the y-axis. See also: Markowitz efficient set of portfolios, Homogeneous expectations assumption.

efficient portfolio

A combination of investments that offer either the highest possible yield at a given risk level or the lowest possible risk at a given yield level. Although the concept of an efficient portfolio is important to understand, in practice it is more academic than practical.
References in periodicals archive ?
Elm, founded by Victor Haghani in 2011, aims to change the way people think about investing and provides a long-only, globally diversified, tax and cost efficient portfolio solution.
Since Equation (1') is the necessary and sufficient condition for the optimal portfolio solution [omega]* within the mean-variance framework, and Equation (1') mathematically equals (1), the unique [omega] in Equation (1) must be the optimal mean-variance efficient portfolio [omega]*.
Therefore, the weights are constrained to be more than or equal to zero, so as to produce short sales constrained efficient portfolio.
Financial organisations in Australia demand CGT calculations as a standard, and by aligning Eagle and AIMS-STM, we are offering the most innovative and efficient portfolio management solution with the most comprehensive CGT calculations," said John Legrand, managing director of Eagle's EMEA and Asia Pacific operations, Eagle Investment Systems.
Does answering a few risk related questions online magically yield the most efficient portfolio that is customized for your long term goals and needs?
SGX's comprehensive suite of Asian index futures offers international investors deeper and more extensive reach into 90% of Asia's economies, providing customers a single point of access with the benefits of efficient portfolio allocation and risk management," said Mr Michael Syn, Head of Derivatives, SGX.
This recent action is a key milestone for GRDA because it moves us that much closer to an even more beneficial and efficient portfolio of generation assets.
The MV+CVaR efficient portfolio reduces the variance from 0.
This direction would appear to signal a new direction from the usual path followed by banks--a model more concerned with offering a broad and efficient portfolio of services.
Derivatives - the Company may enter into derivative transactions for the purpose of efficient portfolio management.
F3's cutting-edge risk capabilities will enable Marisk to conduct efficient portfolio risk calculations resulting in transparency, better understanding of risks, improved pricing and transaction terms," FINCAD said.
In order to run a more efficient portfolio, for example, LIA could invest in a wider range of assets and also diversify geographically.

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