DEFINITION of 'Markowitz Efficient Set'
A set of portfolios with returns that are maximized for a given level of risk based on meanvariance portfolio construction. The efficient "solution set" to a given set of meanvariance parameters (a given riskless asset and a given risky basket of assets) can be graphed into what is called the Markowitz efficient frontier.
INVESTOPEDIA EXPLAINS 'Markowitz Efficient Set'
The Markowitz efficient set is all of the portfolios on the efficient frontier, or those that generate the largest return for a given risk level. The meanvariance and subsequent efficient set theory at one time revolutionized portfolio management, and remains a core lecture in any economist's university years. The theory of meanvariance portfolios lead to the capital asset pricing model, and is still a vital component of professional money management today.

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