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1 Requested move  
5 comments  




2 Risk free asset special  
2 comments  




3 Efficient Frontier Definition  
3 comments  













Talk:Efficient frontier




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Requested move[edit]

The following discussion is an archived discussion of a requested move. Please do not modify it. Subsequent comments should be made in a new section on the talk page. No further edits should be made to this section.

The result of the move request was: Move. Jafeluv (talk) 08:20, 22 December 2011 (UTC)[reply]


Efficient FrontierEfficient frontier

It's even downcased in the article text. Per WP:MOSCAPS ("Wikipedia avoids unnecessary capitalization") and WP:TITLE, this is a generic, common term, not a propriety or commercial term, so the article title should be downcased. Lowercase will match the formatting of related article titles. Tony (talk) 23:55, 15 December 2011 (UTC)[reply]

The above discussion is preserved as an archive of a requested move. Please do not modify it. Subsequent comments should be made in a new section on this talk page. No further edits should be made to this section.

Risk free asset special[edit]

"With a risk-free asset, the straight line is the efficient frontier" the text next to the illustration says. Why isn't the risk free asset just an extra asset, blended into the portfolio and causing the apex of the "bullet" to appear at the risk free assets return/risk? 87.54.11.4 (talk) 10:20, 15 October 2013 (UTC)[reply]

You are correct that the risk free asset is "just an extra asset," but when you include new assets you change the shape of the bullet. In the case of the risk free asset, the efficient frontier becomes a line. Zfeinst (talk) 12:42, 15 October 2013 (UTC)[reply]

Efficient Frontier Definition[edit]

The efficient frontier is not a hyperbola. It is a segment of a parabola defined as the locus of optimal risk (horizontal axis) return (vertical axis) combinations. The "efficient" portfolio of the parabola are those risk-return combinations such that return increases for increases in risk. Geometrically, it is the portion of the parabola above the axis symmetry of the curve. — Preceding unsigned comment added by Wgfoote (talkcontribs) 14:54, 30 March 2017 (UTC)[reply]

It is a parabola if you plot the expected return as a function of the variance (instead of the standard deviation, as depicted in the plot). If you use the standard deviation as the variable, the efficient frontier becomes a part of a hyperbola. 44f54c (talk) 20:09, 3 December 2017 (UTC)[reply]

This article is dumpster. The image contradicts your definition: "it is the set of portfolios which satisfy the condition that no other portfolio exists with a higher expected return but with the same standard deviation of return". What's more, you added the wrong description under the drawing: " The hyperbola is sometimes referred to as the 'Markowitz Bullet', and its upward sloped portion is the efficient frontier". After all, the name 'bullet' comes from the fact that this boundary has the shape of a bullet, which means that it is also a part of the falling part. You mixed everything up, this article is to be thrown away. --PJ — Preceding unsigned comment added by 31.183.237.68 (talk) 16:54, 3 November 2019 (UTC)[reply]


Retrieved from "https://en.wikipedia.org/w/index.php?title=Talk:Efficient_frontier&oldid=1196532518"





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