Crafting portfolio asset allocations is a combination of art and engineering. Just as a blending of colors can produce cerulean, so a blending of indexes produces a unique shade of risk and return.

In contrast, in the Black CAPM—in which investors cannot borrow or lend at the risk-free rate—investors are limited to portfolios on the efficient frontier of risk assets.

An efficient frontier curve involves the integration of multiple assets and all of their expected returns. The efficient frontier uses CAPM to help create an efficient portfolio that tells an ...

Efficient Frontier: The Basics . Introduced by Harry Markowitz in 1952, t he efficient frontier is a financial tool that helps an investor compose an investment portfolio with the best returns ...

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.

If the capital asset pricing model (CAPM) represented the entire formula for risk and return, each of the 25 points would be along the efficient frontier in a relatively straight line. But this is ...

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 ...

Modern portfolio theory is closely related to the efficient frontier. The efficient frontier represents the optimal portfolios that provide the highest return for a given level of risk or the ...

The midcap has had a terrific run from July-2014, starting around some ~2000 points on the index to around ~20000 now. Almost a 10X growth.

An efficient frontier was generated for this portfolio without an allocation to US timberland and farmland investments. A second efficient frontier was then generated, allowing for an allocation of up ...