Explain efficient frontier?

Accounting Information Systems
10th Edition
ISBN:9781337619202
Author:Hall, James A.
Publisher:Hall, James A.
Chapter5: The Expenditure Cycle Part I: Purchases And Cash Disbursements Procedures
Section: Chapter Questions
Problem 6DQ: What is central to a successful EDI implementation?
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Explain efficient frontier?

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Investors look for the portfolios that would generate maximum return at an allowable level of risk. This level is referred to as the optimal portfolio.

Step 2

Efficient frontier consists of two or more set of optimal portfolios with the highest level of expected return at each given level of risk.

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