efficient set

Definition

A set of portfolios which provides the highest returns on a given level of risk. The efficient set is proposed by Harry Markowitz and he theorizes that at given level of risk, there is a set of assets which maximizes a portfolio's return. The efficient set is represented as a line on graph where the x-axis represents the risk and the y-axis represents the expected return.

Mentioned in these terms

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efficient portfolio efficient set of portfolios