What is optimal portfolio?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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What is optimal portfolio?

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One that minimises the risk for a given level of return or maximises the return for a given level of risk is an ideal portfolio. What it means is that, in isolation, danger and return will not be seen. To gain higher returns, the individuals need to take on greater risk.

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