Efficient
Portfolio frontier
Efficient portfolio frontier characteristics
has been explained below
1. Upward slopping curve
Efficient
portfolio frontier is upward slopping curve, show the different combination
return & risk for different portfolios.
2. High Return mean high risk
Efficient
portfolio frontier clearly shows the relationship between return and risk. It
explains that high return portfolio will carry high risk.
3. No preferred portfolio
Efficient
portfolio frontier does not suggest any preferred portfolio. All portfolios are
equally ranked in terms return & risk. No investment decision can be made
on the bases of portfolio frontier.
