Efficient Frontier
/ˈɪfɪʃənt ˈfrʌntɪər/
Definitions
- (n.) A concept in financial and investment law describing the set of optimal portfolios that offer the highest expected return for a defined level of risk or the lowest risk for a given return, relevant in fiduciary duty and compliance contexts.
The trustee relied on the efficient frontier to balance the investment portfolio in accordance with the beneficiaries' interests.
Forms
- efficient frontier
Related terms
See also
Commentary
Used primarily in financial law contexts, understanding the efficient frontier aids legal professionals in assessing compliance with investment obligations and prudent management standards.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.