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Topic: Efficient frontier

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	Modern portfolio theory - Wikipedia, the free encyclopedia
		The line along the upper edge of this region is known as the efficient frontier (sometimes “the Markowitz frontier”).
		The efficient frontier is a collection of portfolios, each one optimal for a given amount of risk.
		The portfolio on the efficient frontier with the highest Sharpe Ratio is known as the market portfolio, or sometimes the super-efficient portfolio; it is the tangency-portfolio in the above diagram.
	en.wikipedia.org /wiki/Efficient_frontier (2505 words)

	Efficient Frontier
		The efficient frontier was first defined by Harry Markowitz in his groundbreaking (1952) paper that launched portfolio theory.
		Portfolios on the efficient frontier are optimal in both the sense that they offer maximal expected return for some given level of risk and minimal risk for some given level of expected return.
		Typically, the portfolios which comprise the efficient frontier are the ones which are most highly diversified.
	www.riskglossary.com /articles/efficient_frontier.htm (608 words)

	Efficient Frontier: Who we are
		Using patent-pending technology, Efficient Frontier models the expected return on all variations of keyword bids and automatically selects the optimal mix to create a reliable and consistent higher rate of return.
		Efficient Frontier offers a highly scalable and robust solution that links business needs with search spend and enables companies to achieve their search marketing goals.
		Headquartered in Mountain View, Calif., Efficient Frontier is privately held with funding from Redpoint Ventures and Cambrian Ventures.
	www.efrontier.com /efficient_frontier/company/index.html (249 words)

	Chief Project Officer: The Efficient Frontier Technique for Analyzing Project Portfolio Management (Site not responding. Last check: 2007-11-01)
		Although the Efficient Frontier uses a few advanced portfolio optimization programs, it should not be seen merely as a computing procedure but as an economist’s way of thinking about investing in projects.
		The Efficient Frontier is a fundamental scientific method – a method that is extremely effective in visually summarizing the information required to understand all of the portfolio possibilities, the cost tradeoffs, and the factors that affect the efficiency of the portfolio.
		Keep in mind that the key prerequisites for success in using the Efficient Frontier are the ability to translate the business strategy into business drivers, rank and weight the drivers, identify the quantifiable impact that the projects will have on the business drivers, and derive the potential value created by the projects.
	www.chiefprojectofficer.com /article/62 (1605 words)

	Combining Preference Theory and CAPM Efficient Frontier - Palisade Corporation
		In any project or investment where uncertainties are involved, the return is given by the average of the net present value or the internal rate of return that is calculated by means of a number of iterations large enough to approach the average result to the expected value of the investment or project.
		The efficient frontier is shown on the following graph, with the indication of risk and return for the four projects individually.
		In the following graph, the efficient frontier, the four projects and the portfolio selections for R varying from 5 to 100 million dollars are shown.
	www.palisade.com /articles/motta_preftheory.asp (1573 words)

	Guided Tools - Efficient Frontier
		The Efficient Frontier consists of a curve made up of points representing a number of portfolios with differing levels of risk and return.
		The dots along the line are "efficient" portfolios, meaning their assets have been optimally allocated to provide the greatest expected return for a given level of risk.
		Once you have found a portfolio along the Efficient Frontier that satisfactorily offers an expected rate of return for your assumed degree of risk, there remains the act of ensuring that your portfolio remains efficient throughout the swings in the economy.
	www.guidedchoice.com /stayingon.html (1179 words)

	Schlumberger, Monte Carlo: An Alternate Approach to Efficient Frontier
		It is possible to find this efficient frontier using the approach described by Markowitz, but an alternate, Monte Carlo-based approach may be more applicable to the intricacies and complications found in the petroleum industry.
		In order to perform Markowitz’ efficient frontier analysis, some key information must first be collected: the expected value of each opportunity; the risk of each opportunity as measured by the variance of the possible outcomes; and the correlation in performance between each project and all the other projects.
		The company can then apply a rule to the efficient frontier analysis stating that if one of these cases is included in a portfolio, the others must be excluded (as they represent the same case).
	www.slb.com /content/services/software/valuerisk/expert_paper_monte_carlo.asp?seg=www.bjalondon.com& (2802 words)

	Portfolio Diversification and the Efficient Frontier (Site not responding. Last check: 2007-11-01)
		It's clear that for any given value of standard deviation, you would like to choose a portfolio that gives you the greatest possible rate of return; so you always want a portfolio that lies up along the efficient frontier, rather than lower down, in the interior of the region.
		This is the first important property of the efficient frontier: it's where the best portfolios are.
		The second important property of the efficient frontier is that it's curved, not straight.
	www.moneychimp.com /articles/risk/efficient_frontier.htm (439 words)

	FT Mandate: Crossing the efficient frontier
		In portfolio theory, an efficient frontier is the collection of optimal, or efficient, portfolios, mapped according to their expected return and volatility.
		Efficient frontier analysis, aiming at selecting the best risk/return portfolios, could until recently only be performed using “classical” assets, but this can now be undertaken on a portfolio containing structured products.
		An efficient portfolio is the unique portfolio that has the highest expected return for a given volatility, and likewise the lowest volatility for a given return.
	www.ftmandate.com /news/fullstory.php/aid/1007/Crossing_the_efficient_frontier.html (910 words)

	Celoxis: Project Management Articles
		This is because the efficient frontier is constructed such that the best projects are included in the least-cost portfolios, i.e., those portfolios that show up first on the left side of the curve.
		It is relatively easy for a computer (with an efficient optimization engine) to try various combinations and locate the efficient frontier, provided the right algorithms are in place for determining how the costs and benefits of individual projects combine to determine the costs and benefits of the project portfolio as a whole.
		Calculating the efficient frontier creates a new perspective, one that helps managers throughout the organization to fully appreciate the reality that resources are limited, better understand the relationship between value created and costs incurred, and, when the opportunity is great enough, find ways to break the constraint on costs.
	celoxis.com /html/articles.php/portfolio_proj_efficient_frontier.html (1329 words)

	Efficient frontier analysis - Consumerium (Site not responding. Last check: 2007-11-01)
		The efficient frontier is a w:convex hull of the a set of data points.
		Efficient frontier analysis (EFA) is used to negotiate "optimal" compromises between "competing" objectives.
		The portion of the convex hull that is of interest when one is interested in maximizing the vertical axis variable while minimizing the other is the upper left (possibly referred to as "northwest") portion.
	develop.consumerium.org /wiki/EFA (1021 words)

	Efficient Frontier: Careers and Opportunities; Mountain View, CA, New York, NY, Chennai, India, London, UK
		Efficient Frontier is looking for dynamic individuals who want to be part of building solutions that change the economics of online marketing.
		As part of Efficient Frontier's world-class team, you will have the opportunity to be a part of a private company and work in a fast-paced, rewarding environment, addressing a red-hot market.
		Efficient Frontier is expanding abroad, and as part of the international push we are looking for talented and motivated internationalization (i18n) and localization (l10n) engineers.
	www.everesttech.net /efficient_frontier/careers.htm (2413 words)

	Stable Efficient Frontier (Site not responding. Last check: 2007-11-01)
		An extension of that notion is the so-called "Efficient Frontier", a sidewise parabolic curve the upper half of which represents the way one can optimize return while minimizing risk.
		Below five pairs of efficient frontiers cycle and repeat in the graph.
		For one of the cases the normal frontier is a mere dot, barely visible just to the left of the nose of the stable plot.
	www.hostsrv.com /webmac/webm1027/private/StableEffFront.html (285 words)

	WATS Efficient Frontier Surfing
		The Efficient Frontier represents portfolios that achieve the highest level of return for their level of risk, or, conversely, the lowest level of risk for their level of return.
		The Efficient Frontier is defined relative to the feasible region--it is the part of the feasible region with the highest level of return for a given level of risk (or conversely, the lowest level of risk for a given level of return).
		Choosing a Portfolio that is On the Efficient Frontier
	www.zunna.com /WATS/EfficientFrontierSurfing.htm (858 words)

	The Efficient Frontier
		he arc of points between A, D and B is called the ‘efficient frontier.’ Its significance is that all the outcomes below this line shortchange you, your opponent, the issues you care about, and the issues she cares about.
		If your issue were health reform, and one side was mainly concerned about the quality of health care and the other one was mostly concerned with cost, the gap between C and D on this chart could represent the health of millions of people and a savings of trillions of dollars.
		The efficient frontier is, perhaps, a vision of a better world to which we could all subscribe.
	www.democracy2000.org /effrontierS.htm (826 words)

	Efficient Frontier
		In a paragraph the Efficient Frontier looks at various asset allocations from a set of asset classes (such as Large Company Growth, Small Company Value, Short Term Investment Grade Corporate Bonds, etc.) and tries to find the asset allocation that minimizes the "risk" while achieving a given level of expected return.
		Below is a sample of one of the Efficient Frontier graphs that I received as part of the work done for me.
		The goal is to find the 'Efficient Frontier of Withdrawals' which will tell us what asset allocation and withdrawal parameters will, for a given median/average income minimize the 95th percentile minimum annual income.
	members.tripod.com /DaveLeeMn/efficient_frontier.htm (1905 words)

	MPPM540: Chapter 2 (Site not responding. Last check: 2007-11-01)
		The efficient frontier, shown in blue, is the set of dominant portfolios, at least from the perspective of a risk averse investor.
		The efficient frontier has a portfolio for everyone -- there are an infinite number of points in the set, corresponding to the infinite variation in investor preferences for risk.
		This picture is a diagram of the efficient frontier composed of ALL the risky assets in the economy, as well as the riskless asset.
	viking.som.yale.edu /will/finman540/classnotes/class2.html (1775 words)

	From the Efficient Frontier to the CAPM (Site not responding. Last check: 2007-11-01)
		This analysis was illustrated with a simple Excel spreadsheet allowing the historical estimation of an efficient frontier for the current 30 stocks in the Dow Jones Industrial Average (DJIA) based on nearly 20 years of historical monthly returns for these stocks.
		And it is the upper section of this frontier (representing the best return possible for a target level of risk) that is the efficient frontier.
		As Figure 1 illustrates, that establishes a straight line efficient frontier bounded by a 100 percent investment in the risk-free asset and a 100 percent investment in the optimal portfolio of risky assets for one’s risk preferences.
	www.fenews.com /fen49/back_to_basics/back-to-basics.htm (2252 words)

	A Case Study in Portfolio Optimization: The Efficient Frontier (Site not responding. Last check: 2007-11-01)
		Similarly, there may be multiple portfolios that have the same return and modern portfolio theory assumes that, for a specified level of return, a rational investor would choose the portfolio having the lowest standard deviation.
		A portfolio is said to be efficient if there is no portfolio having the same standard deviation with a greater expected return and there is no portfolio having the same return with a lesser standard deviation.
		Below is the graph of the efficient frontier for the Dow Industrials from 1985 to 1991.
	www-fp.mcs.anl.gov /otc/Guide/CaseStudies/port/efrontier.html (227 words)

	The Markowitz Efficient Frontier for Risky Assets – in Excel (Site not responding. Last check: 2007-11-01)
		And (this always made me laugh), some textbooks justify the use of the term “frontier” for the curve by showing a point under the curve and arguing (again) that no rational investor would sub-optimize their risk-return expectations by selecting a point that didn’t lie on the curve.
		And, again, assuming this was the case, investors would each select a portfolio combination of risky asset one and two (determined by their relative weights) that lies on the point of tangency between this efficient frontier and their unique risk-reward utility curves that reflect their relative risk tolerance and aversion.
		A second insight was how the outline of an efficient frontier becomes much less certain, or visually apparent, when I used timeframes for my analysis of a year or less.
	www.fenews.com /fen48/back_to_basics/back-to-basics.htm (2114 words)

	Efficient Set (Site not responding. Last check: 2007-11-01)
		The efficient set can now be located by applying the efficient set theorem to this feasible set.
		This demonstrates that all the portfolios in the efficient set are located on the "northwest" boundary of the feasible set, often called the efficient frontier.
		Graph displaying the feasible set (the dark area), the efficient set (the borderline between E and S is) and some indifference curves.
	www.cs.brandeis.edu /~magnus/stocks/node4.html (154 words)

	Efficient Solutions Inc. - Introduction to MVO
		The efficient frontier, which is the set of portfolios with expected return greater than any other with the same or lesser risk, and lesser risk than any other with the same or greater expected return.
		The efficient frontier is conventionally displayed on a graph with the standard deviation on the horizontal axis and the expected return on the vertical axis.
		The Geometric Mean Frontier, which is the set of rebalanced portfolios with geometric mean return greater than any other with the same or lesser risk, and lesser risk than any other with the same or greater geometric mean return.
	www.effisols.com /basics (948 words)

	Asset Allocation \| Efficient Frontier
		The frontier represents the efficient set of portfolios that can be created using the selected asset classes.
		Consequently the frontier may be dominated by the best performing manager over the short-term.
		Once a target asset allocation with the desired risk return profile is selected from the frontier, we convert this into a “policy benchmark” by creating a composite (a “blend” in StyleADVISOR) made up of the various indices and their respective weights.
	www.styleadvisor.com /resources/concepts/asset_allocation.html (861 words)

	DIRECT Magazine - DirectBuzz Blog » Blog Archive » Efficient Frontier Looks Out for the Little Guy
		I had an interesting conversation with Ellen Siminoff, CEO of Efficient Frontier, the search marketing company that applies hedge-fund quantitative analysis to the business of managing pay-per-click search ad campaigns.
		I exercised my considerable clout, snuck her into the press room unbadged, and heard her discourse on the significance of Efficient Frontier Express, a Web-based search management tool aimed at marketers who spend from $10,000 to $50,000 a month on sponsored listings.
		Efficient puts a pixel on the relevant Web pages of their site and watches performance for two weeks, then runs forecasts and reports back to the marketer the optimum keyword bids to meet those goals within that budget.
	blog.directmag.com /buzz/2006/04/27/efficient-frontier-looks-out-for-the-little-guy (526 words)

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