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Define efficient frontier line and minimum variance portfolio

Define efficient frontier line and minimum variance portfolio

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Answer #1

Efficient frontier line represent the combination of assets providing highest return for given variance or risk and for a given return what is the minimum risk portfolio. It is based on the assumption that it follows normal distribution.

Minimum Variance Portfolio is creation of such a portfolio where assets are weighted in such a way that the variance is minimum.It is a curve return and standard deviation which denotes the portfolio with minimum variance.

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