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Efficient frontier |
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Efficient frontierThe combinations of securities portfolios that maximize expected return for any level of expected risk, or that minimizes expected risk for any level of expected return. Pioneered by Harry Markowitz.Efficient frontier Similar MatchesEfficient allocationEfficient allocationAn allocation that it is impossible unambiguously to improve upon, in the sense of producing more of one good without producing less of another. Coefficient of determinationCoefficient of determinationA measure of the goodness of fit of the relationship between the dependent and independent variables in a regression analysis; for instance, the percentage of variation in the return of an asset explained by the market portfolio return. Also known as R-square. Minimum efficient scaleMinimum efficient scaleThe smallest output of a firm consistent with minimum average cost. In small countries, in some industries the level of demand in autarky is not sufficient to support minimum efficient scale. Efficient diversificationEfficient diversificationThe organizing principle of modern portfolio theory, which maintains that any risk-averse investor will search for the highest expected return for any particular level of portfolio risk. Operationally efficient marketOperationally efficient marketMarket in which investors can obtain transactions services that reflect the true costs associated with furnishing those services. Also called an internally efficient market. Further SuggestionsEfficient markets theory(EMT)efficient market theory Efficient capital market Inefficient portfolio Efficient set Earnings response coefficient Internally efficient market Gini Coefficient Coefficient of Variation Efficient market Regression coefficient Correlation coefficient Efficient market Information Coefficient (IC) |
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