File:Figure 1- Efficient Frontier Graph.jpg
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The x- axis represents the standard deviation of the data, which is also known as the risk tolerance. On the y- axis is the expected percent return. The points near the solid line are optimal, which is also known as the frontier line. Any points that fall below the curve are considered to be nonoptimal. This is due to the fact that with the same risk tolerance there are better expected returns. This method has its limitations as it relies on past data.
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| current | 21:09, 28 November 2021 | | 1,153 × 573 (48 KB) | Kevinpan156 (talk | contribs) |
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