The efficient frontier can help you build a winning investment portfolio. ... The curve is the collection of potential returns across the spectrum of risk, from low volatility to high.

That curve is the Efficient Frontier and any portfolio that is below that curve is sub-optimal. Meaning that you’re leaving money on the table.

And at the efficient frontier, the math produces nothing but curves. The efficiency of an investment is measured by the greatest return for the lowest volatility.

It is on the frontier curve, but below the mean variance portfolio, so it is not a portfolio any investor would hold. Exhibit 2 shows the allocations that the various points in Exhibit 1 represent.

The efficient frontier curve illustrates the optimal combination of assets for a desired level of risk or return, while the capital market line depicts the best possible tradeoff between risk and ...

Modern Portfolio Theory plays a role in academic finance, but for Dave Basten of API Funds, MPT plays a unique role in investment practice.

Calculating CAPM is meant to establish the so-called "efficient frontier." That is, it helps identify the highest potential return for a given level of risk or the lowest level of risk for a ...

The efficient frontier is defined as the set of portfolios which maximizes expected return for a given level of risk. The theory was developed by Nobel laureate and economist, Harry Markowitz, and ...

That's the best way to place yourself on the right part of the efficient frontier curve. People who have long time horizons and can stomach volatility are able to take more risks in favor of growth.