MINIMUM-VARIANCE FRONTIER
\mˈɪnɪməmvˈe͡əɹi͡əns fɹˈʌnti͡ə], \mˈɪnɪməmvˈeəɹiəns fɹˈʌntiə], \m_ˈɪ_n_ɪ_m_ə_m_v_ˈeə_ɹ_iə_n_s f_ɹ_ˈʌ_n_t_iə]\
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According to Markowitz's Modern Portfolio Theory, this is the minimum stock volatility within any given portfolio. In theory, a well-balanced portfolio is sufficiently diversified that one particular stock's risk will be offset by the rest of the portfolio. A graph with each stock's risk portrayed as data point illustrates this.
By Henry Campbell Black
Word of the day
dust storm
- a windstorm that lifts up clouds of dust or sand a windstorm that lifts up clouds dust or sand; "it was the kind of duster not experienced in years"