Question

Distinguish between efficient portfolio and feasiblr portfolio

Answer 1

Answer:

There cannot be two similar efficient portfolios but can be many similar feasible portfolios.

If expected returns are not met for a particular risk level, or the risk required to attain a specific level of return is too high, the portfolio is said to be inefficient

Answer 2

Answer:

The efficient frontier is the set of optimalportfolios that offer the highest expected return for a defined level of risk or the lowest risk for a given level of expected return. Portfolios that lie below the efficient frontier are sub-optimal because they do not provide enough return for the level of risk.