Financial Terms | |
Markowitz efficient frontier |
Information about financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.
Main Page: money, financial advisor, finance, inventory, tax advisor, stock trading, investment, financial, Also see related: home insurance, homebuying, financing, mortgage, first time homebuyer, insurance, real estate, credit, buy home, |
Definition of Markowitz efficient frontierMarkowitz efficient frontierThe graphical depiction of the markowitz efficient set of portfolios
Related Terms:Markowitz efficient set of portfoliosThe collection of all efficient portfolios, graphically referred to as the Beta coefficientA measurement of the extent to which the returns on a given stock move with stock market. coefficient of correlationa measure of dispersion that indicates the degree of relative association existing between two variables Coefficient of determinationA measure of the goodness of fit of the relationship between the dependent and coefficient of determinationa measure of dispersion that coefficient of variationa measure of risk used when the standard deviations for multiple projects are approximately Correlation coefficientA standardized statistical measure of the dependence of two random variables, Correlation CoefficientA measure of the tendency of two variables to change values Correlation coefficientA statistic in which the covariance is scaled to a Efficient capital marketA market in which new information is very quickly reflected accurately in share efficient capital marketsFinancial markets in which security prices rapidly reflect all relevant information about asset values. Efficient diversificationThe organizing principle of modern portfolio theory, which maintains that any riskaverse Efficient frontierThe combinations of securities portfolios that maximize expected return for any level of Efficient frontierA graph representing a set of portfolios that maximizes Efficient Market HypothesisIn general the hypothesis states that all relevant information is fully and Efficient Markets HypothesisThe 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. Efficient portfolioA portfolio that provides the greatest expected return for a given level of risk (i.e. standard Information Coefficient (IC)The correlation between predicted and actual stock returns, sometimes used to input-output coefficienta number (prefaced as a multiplier Internally efficient marketOperationally efficient market. Markowitz diversificationA strategy that seeks to combine assets a portfolio with returns that are less than Markowitz efficient portfolioAlso called a mean-variance efficient portfolio, a portfolio that has the highest Markowitz modelA model for selecting an optimum investment portfolio, Mean-variance efficient portfolioRelated: markowitz efficient portfolio Minimum-variance frontierGraph of the lowest possible portfolio variance that is attainable for a given Operationally efficient marketAlso called an internally efficient market, one in which investors can obtain
Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |