Efficient Set

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Definition: Efficient Set


Efficient Set


Full Definition of Efficient Set


A set of portfolios which provides the highest returns on a given level of risk. The efficient set is proposed by Harry Markowitz and he theorizes that at given level of risk, there is a set of assets which maximizes a portfolio’s return. The efficient set is represented as a line on graph where the x-axis represents the risk and the y-axis represents the expected return.


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Definition Sources


Definitions for Efficient Set 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: 20th November, 2021 | 0 Views.