The curve above the Global Minimum Variance is the “Markowitz Efficient Frontier”, which contains all the portfolios of risky assets that rational, risk adverse investors will choose. The curve below the Global Minimum Variance offers lower returns for higher risk (not efficient). With the “Markowitz Efficient Frontier” there is an increase in risk with a concurrent increase in return. However, the more you move right, the slope would continually decrease and plateau meaning investors obtain decreasing increases in returns as they assume more risk.
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