What is the 'Markowitz Efficient Set'
The Markowitz efficient set is 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.
BREAKING DOWN '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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What are the advantages of portfolio planning with the efficient frontier?
Learn about modern portfolio theory and the efficient frontier. Understand the advantages of portfolio planning with the ... Read Answer >> 
How have portfolios from within the efficient frontier performed historically?
Explore how the efficient frontier is used in selecting investment portfolios. Find out how risks and returns are used to ... Read Answer >> 
Why is risk return tradeoff important in designing a portfolio?
Learn how the risk return tradeoff is used in the construction of portfolios, and how modern portfolio theory seeks to diversify ... Read Answer >> 
How is portfolio variance reduced in Modern Portfolio Theory?
Learn about modern portfolio theory, specifically what it asserts about asset allocation and managing portfolio risk through ... Read Answer >> 
Which of the following is the most true regarding the type of assets found along ...
The correct answer is b. The efficient frontier is comprised mainly of portfolios that contain several imperfectly correlated ... Read Answer >> 
Where did Modern Portfolio Theory (MPT) come from?
Learn about modern portfolio theory, or MPT, and its origins. MPT has become a standard paradigm through which investors ... Read Answer >>