Economics Risk And Return Questions
The efficient frontier is a concept in finance that represents the set of optimal portfolios that offer the highest expected return for a given level of risk, or the lowest level of risk for a given expected return. It is a graphical representation of the different combinations of assets that provide the maximum return for a given level of risk, or the minimum risk for a given level of return. The efficient frontier helps investors to determine the optimal portfolio allocation by considering the trade-off between risk and return.