Optimal portfolio
Optimal portfolio is the point at which the efficient set of portfolios—the efficient frontier—is just tangent to the investor's in difference curve. This point marks the highest level of satisfaction an investor can attain given the set of potential portfolios.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Optimal portfolio. The point at which the efficient set of portfolios—the efficient frontier—is just tangent to the investor's in difference curve. This point marks the highest level of satisfaction an investor can attain given the set of potential portfolios.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
