An efficient portfolio is not always a mean-variance optimized portfolio. An efficient portfolio must, necessarily, be customized for every investor. For some investors an efficient portfolio might maximize the portfolio value when they retire, for other investors an efficient portfolio might provide the best preservation of capital given a certain percent of income. Nobel Laureate, Harry Markowitz listed a range of various definitions of efficient portfolios in his book, "Portfolio Selection."
Our investment tool can help you, your clients and prospects create custom efficient portfolios. Modeling diversification as a trans-dimensional portfolio attribute frees the investor to set risk and return values as you please.
This system promotes each investor to build an efficient portfolio that is best suited for them given their goals, strategies, market outlook and preferences. |
