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Asset Allocation on Efficient Frontier

But what is the efficient frontier?

In modern portfolio theory, the efficient frontier (or portfolio frontier) is an investment portfolio which occupies the "efficient" parts of the risk–return spectrum. Formally, it is the set of portfolios which satisfy the condition that no other portfolio exists with a higher expected return but with the same standard deviation of return (the risk).

Markowitz_frontier

This is a n = 10 000 simulation where portfolios on the efficient frontier are built. Assuming efficient market hypotesis exists. I hope.

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simulazioni sull'asset allocation sulla frontiera efficiente

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