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The Efficient Frontier is a graph that shows the portfolio (combination of stocks and bonds) that would give you the highest return at each level of risk. Any point above that is unattainable without a change in risk, any point below is inefficient (that is you could receive greater return for that mix of stocks and bond then you are currently receiving).

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13y ago
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16y ago

it is well explained in this link http://www.fxwords.com/e/efficient-frontier.html i hope it will be useful

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Q: What is the graph of the efficient frontier?
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Related questions

What tool helps a producer set up an efficient system of production?

a production possibilities frontier graph


What tool helps producers set up an efficient system of production?

a production possibilities frontier graph


What helps a producer set up an efficient system of production?

a production possibilities frontier graph


What tools help a producer set up efficient system of production?

a production possibilities frontier graph


Why can production take place on or inside the frontier?

This is known as the law of diminishing returns and can occur because factor on the frontier is deemed to be production efficient and production inside frontier.


Where would a point of underutilization appear on a product possibilities graph?

below or to the left of the production possibilities frontier


What states the purpose of using the production possibilities frontier?

Setting up efficient production


Producers can use a production possibilities frontier for what purposes?

A production possibilities frontier, or PPF, is a curve graph which shows combinations of two or more goods or services. The graph shows these goods or services being produced while using a maximum amount of resources.


What do you call an economy working at its most efficient production level?

PPF- product possibility frontier.


What best states the purpose of using a production possibility frontier?

Setting up efficient production


What best states the purpose of using production possibilities frontier?

Setting up efficient production


Which tools helps a producer set up an efficent systemof production?

A production possibilities frontier graph