Efficient Frontier

Business, Legal & Accounting Glossary

Definition: Efficient Frontier




Full Definition of Efficient Frontier


The efficient frontier is the curve along all market securities which delivers the highest returns for the lowest risk. Any investment below the dotted line in the image (right) will deliver lower returns for the same amount of risk and is therefore not ideal.

Investing on the right (upper) side of the frontier means using leverage, and of course, means higher risk.


Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/efficient-frontier/
Modern Language Association (MLA):
Efficient Frontier. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. September 26, 2021 https://payrollheaven.com/define/efficient-frontier/.
Chicago Manual of Style (CMS):
Efficient Frontier. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/efficient-frontier/ (accessed: September 26, 2021).
American Psychological Association (APA):
Efficient Frontier. PayrollHeaven.com. Retrieved September 26, 2021, from PayrollHeaven.com website: https://payrollheaven.com/define/efficient-frontier/

Definition Sources


Definitions for Efficient Frontier are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 26th March, 2020 | 0 Views.