Markowitz efficient frontier

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Markowitz efficient frontier

The graphical depiction of the Markowitz efficient set of portfolios representing the boundary of the set of feasible portfolios that have the maximum return for a given level of risk. Any portfolios above the frontier cannot be achieved. Any below the frontier are dominated by Markowitz efficient portfolios.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
(1972), "An Analytic Derivation of the Efficient Portfolio Frontier," Journal of Financial Quantitative Analysis 7: 1851-1872
We introduce this advantage by assuming that there is a cost to acquiring the information needed to determine the economy's Efficient Portfolio Frontier (EPF).
If they do so, the fund manager chooses a portfolio on the Efficient Portfolio Frontier. If [beta] is positive, investors will not employ fund managers to manage their investment portfolios.
unhedged and hedged efficient portfolio frontiers in Charts

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