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Definition of Efficient frontier
A graph representing a set of portfolios that maximizes
The combinations of securities portfolios that maximize expected return for any level of
The graphical depiction of the Markowitz efficient set of portfolios
The collection of all efficient portfolios, graphically referred to as the
A model for selecting an optimum investment portfolio,
A measure of the goodness of fit of the relationship between the dependent and
A standardized statistical measure of the dependence of two random variables,
A market in which new information is very quickly reflected accurately in share
The organizing principle of modern portfolio theory, which maintains that any riskaverse
In general the hypothesis states that all relevant information is fully and
A portfolio that provides the greatest expected return for a given level of risk (i.e. standard
The correlation between predicted and actual stock returns, sometimes used to
Operationally efficient market.
Also called a mean-variance efficient portfolio, a portfolio that has the highest
Related: Markowitz efficient portfolio
Graph of the lowest possible portfolio variance that is attainable for a given
Also called an internally efficient market, one in which investors can obtain
A measure of the tendency of two variables to change values
coefficient of correlation
a measure of dispersion that indicates the degree of relative association existing between two variables
coefficient of determination
a measure of dispersion that
coefficient of variation
a measure of risk used when the standard deviations for multiple projects are approximately
a number (prefaced as a multiplier
A statistic in which the covariance is scaled to a
efficient capital markets
Financial markets in which security prices rapidly reflect all relevant information about asset values.
A measurement of the extent to which the returns on a given stock move with stock market.
Efficient Markets Hypothesis
The hypothesis that securities are typically in equilibrium--that they are fairly priced in the sense that the price reflects all publicly available information on the security.
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