There is a misconception that allocating portfolios is simply a matter of running portfolio optimization software to find the “efficient frontier,” or the highest expected return for the lowest level ...

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Efficient frontier visualizes optimal portfolios by balancing returns with risk. Portfolios right of the efficient frontier yield poorer returns for higher risk. Robo-advisors use this model to ...

With the publication of his simply titled dissertation, "Portfolio Selection," 55 years ago, Harry Markowitz, a doctoral candidate in economics at the University of Chicago, presented the investment ...

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 ...

Stochastic dominance provides a rigorous method to compare uncertain prospects without imposing restrictive assumptions on investor risk preferences, thus offering an alternative to traditional ...

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 ...