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Fundamental
Efficient Frontier
Portfolio theory curve of max expected return for a given risk
Definition
Efficient frontier represents optimal portfolios that maximize expected return for a given risk level (or minimize risk for a given return). Portfolios below the frontier are suboptimal. Modern Portfolio Theory uses this concept for asset allocation.
Related Topics
#portfolio theory
#optimization
#risk-return tradeoff
#asset allocation
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Category: Fundamental
Fundamental analysis examines a company's financial health, management quality, and market position to determine intrinsic value.
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