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 ?

Among the advantages are broad diversification, professional management, liquidity, efficient portfolio management and, most importantly, the opportunity to buy at a discount to the net asset value of the fund.

Money Management: Municipal bond investment yields significant after-tax return

We have a very efficient portfolio and we still have more we can do to it.

Shell bullish about North Sea

The LifeYield Advantage Suite is the industry's only tax efficient portfolio software with actionable multi-account advice that empowers Financial Advisors to offer advice and guidance designed to help increase wealth and improve the retirement of their clients.

Morgan Stanley and LifeYield to empower financial advisors

We built it to help solve a need that they saw, to deliver an efficient portfolio construction and segment their client base," Kalbaugh said.

LPL Launching Robo-Advisor This Month

com)-- The tools provided through the Diversify Portfolio website focus on diversification, correlation and efficient portfolio construction.

Diversify Portfolio Announces Support for Multiple Stock Portfolios

It could in fact very well be the other way round: the losses in expected return that are incurred by foregoing an efficient portfolio may be overcompensated by the cost of capital that is saved through the associated reduction in equity.

Portfolio optimization under solvency II: implicit constraints imposed by the market risk standard formula

It is very often claimed by the mutual funds managers that they have efficient portfolio.

THRIVING MUTUAL FUNDS INDUSTRY CAN LEAD ECONOMY GROW UP

In a recent update of Unified Wealth Platform, Fiserv transformed support of MFA programs with a new digital user experience, providing users with more efficient portfolio management and trading solutions.

United States : Fiserv wins US mutual fund services award 2016

Our collaboration with Saxo Bank combines our equity research into an effective and efficient portfolio offering that is available to a wide audience.

Saxo Bank collaborates with Morningstar to offer portfolio of value stocks to SaxoSelect clients

In contrast, here the VaR line is used to select the efficient portfolio or the amount of borrowing and lending of the investor.

Solutions to the portfolio choice problem with VaR objective functions

The share sale was closed at a premium of over 38% to the initial purchase price and is an example of efficient portfolio management and optimization program of Rosneft.

Rosneft to Sell 8.99% Stake in Italian Refiner Saras

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]*.