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Efficient frontier a holding the correlation coefficient constant we could change the weights of the two assets in the portfolio We could then determine a number of expected risk and return coordinates for the portfolio and plot these in risk-return space It is possible to derive a complete curve by Simply varying the weights by small incrementsEfficient Frontier ◼ Holding the correlation coefficient constant, we could change the weights of the two assets in the portfolio. ◼ We could then determine a number of expected risk and return coordinates for the portfolio and plot these in risk-return space. ◼ It is possible to derive a complete curve by simply varying the weights by small increments
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