MARKOWITZ EFFICIENT SET
A set of portfolios with highest returns on a given level of risk, according to mean-variance portfolio structure. Proposed by American Economist Harry Markowitz, the theory states that in every given risk, there is a set of assets that gives an optimal return on a portfolio. The effective solution set on a given set of mean-variance parameters, for instance, a riskless asset and a risky basket of assets, can be plotted into Markowitz efficient frontier. This is graphed as a line where x-asis pertains to risk and y-axis to anticipated return.
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