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 ...

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 has ...

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 ...

Efficient frontier diagrams do not actually show the asset allocations of portfolios on the efficient frontier, but this information is also available. Exhibit 1.3 provides an example of ten ...

Among academicians, few have made a real-world impact as far-reaching as Harry Markowitz, the father of modern portfolio theory. Markowitz devised his seminal theory as a 23-year-old Ph.D. student at ...

If there is a portfolio that is superior to the efficient frontier, that means that your efficient frontier is not in fact the efficient frontier. I thought that was pretty obvious, but it's not to ...

Trevir Nath has five years of experience as a financial writer working with various startups, financial services companies, and news publications. Trevor is an expert on business, personal finance, ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Anthony Battle is a CERTIFIED FINANCIAL ...

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 ...