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What are the assumptions sufficient to guarantee that the market portfolio is an efficient portfolio

What are the assumptions sufficient to guarantee that the market portfolio is an efficient portfolio

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What does “efficient portfolio” mean here? Portfolios on the efficient frontier or the market portfolio? Only the market portfolio (the tangential SML portfolio) will have no unsystematic risk if there is a risk-free asset. All portfolios have systematic risk. Any portfolio with more risk/return that is possible in any scenario must have unsystematic risk.

For understanding, a portfolio that provides the greatest expected return for a given level of risk, or equivalently, the lowest risk for a given expected return. also called optimal portfolio.

An efficient portfolio, also known as an ‘optimal portfolio’, is one that provides that best-expected return on a given level of risk, or alternatively, the minimum risk for a given expected return. A portfolio is a spread of investment products.

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