A curved line on a risk/reward graph showing the combinations of different securities which produce the maximum expected return for a given level of risk or minimise risk for a given level of return.

Too many investors ignore risk and volatility, and focus exclusively on growth. The efficient frontier illustrates a balanced approach to maximize growth with responsible risk. This chart can be used ...

One of the classic underpinnings of Modern Portfolio Theory needs an update. In the early 1950s, Harry Markowitz's work on mean-variance optimization blazed a new investing paradigm. His Efficient ...

Cierra Murry is an expert in banking, credit cards, investing, loans, mortgages, and real estate. She is a banking consultant, loan signing agent, and arbitrator with more than 15 years of experience ...

The Efficient Frontier is a concept core to Modern Portfolio Theory, developed by Harry Markowitz and others in 1952. Its purpose is to help identify the 'optimally diversified' portfolio by studying ...

I use a form of the Efficient Frontier (EF) from Modern Portfolio Theory that allocates non-negative weights to a proposed portfolio. Using FAANG as a metric, the returns on test ‘portfolios’ since ...

There is a misconception that allocating portfolios is simply a matter of running portfolio optimization software to find the “efficient frontier,” or the highest expected return for the lowest level ...

Building a truly efficient portfolio involves a lot more than a plotted dot on a risk-return graph, said David Blanchett, a managing director and head of retirement research at PGIM DC Solutions.

Most investors make an important mistake when they're building their investment portfolio, and it can be a costly one. Luckily, we can all take valuable insights from an important chart that's used by ...