Define efficient frontier

Accounting Information Systems
10th Edition
ISBN:9781337619202
Author:Hall, James A.
Publisher:Hall, James A.
Chapter13: Systems Development And Program Change Activities
Section: Chapter Questions
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Define efficient frontier

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Step 1

The efficient frontier is the collection of efficient portfolios, which provide the most expected return for a delineated risk level or the least risky for a provided expected return stage.

Step 2

Portfolios underneath the efficient frontier are ineffective since they do not return the degree of hazard sufficiently. The portfolios on which the efficient frontier cluster is located at the right are suboptimal as they have an increased risk of a given return rate.

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