Efficient Frontier

What Does Efficient Frontier Mean?
A line created from the risk-reward graph, comprised of optimal portfolios.

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

Filed Under: Mutual Funds, Stocks

Related Terms

Markowitz Efficient Set
Modern Portfolio Theory - MPT
Portfolio
Return
Risk
Risk-Return Tradeoff
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