oboloo Glossary

Efficiency Frontier

oboloo Glossary

Efficiency Frontier

The efficiency frontier is the economic concept that represents the boundary between efficient and inefficient investment portfolios. An efficient portfolio is one that offers the highest possible return for a given level of risk, while an inefficient portfolio has a lower return for the same amount of risk. The efficiency frontier can be used by investors to identify which portfolio is right for them based on their desired level of risk and return.

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