Markowitz Efficient Frontier

The Markowitz Efficient Frontier is a concept in investment management that shows the best possible options for balancing risk and return. It visualizes different investment portfolios that maximize returns for a given level of risk or minimize risk for a specific return. Portfolios on this frontier are considered efficient because they offer the optimal trade-off between risk and reward. Investors can choose their preferred point on the curve based on their risk tolerance, helping them make informed decisions to achieve the best possible outcome for their investment goals.