Efficient portfolios

Optimization produce efficient portfolios. Efficient portfolios achieve less risk than other portfolios with similar return, or better return for the same level of risk. The set of efficient portfolios is represented graphically by the efficient frontier chart.

You can explore the efficient portfolios on the frontier by moving the cursor on the horizontal slider.

 

On the bottom right side, the current/optimized portfolios are shown side by side:

 

A summary table compares the efficient portfolio to your portfolio:

• the first column (expected return) corresponds to the y coordinate of the portfolio in the graph
• the second column (risk) corresponds to x coordinate of the portfolio in the graph

The most conservative portfolio (minimum risk) corresponds to the leftmost point on the efficient frontier.

Saving the optimized portfolio

Select 'Save' to copy the weights of the efficient portfolio to a new porfolio. A dialog box appears, giving you a choice for the new portfolio title.