medium · Quantitative Finance qf-core
A portfolio w is said to be on the 'Efficient Frontier' if for a given level of risk, it provides the maximum possible expected return.
Mathematically, this set of portfolios forms which geometric shape in the (E[R], σ) plane?
- A concave parabola opening to the right.
- The upper branch of a hyperbola.
- A circle centered at the Global Minimum Variance portfolio.
- A straight line starting from the origin.
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