efficient portfolio investment & finance definition
A portfolio whose return is maximized according to
expected returns or risk levels. An efficient portfolio is mathematically calculated
and takes into account the expected return for each security and its standard
deviation.
See efficient portfolio in Wall Street Words
A combination of investments that offer either the highest possible yield at a given risk level or the lowest possible risk at a given yield level. Although the concept of an efficient portfolio is important to understand, in practice it is more academic than practical.
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