The efficient set Theorem The efficient frontier The efficient frontier or efficient set is a set of portfolio which meets both conditions of the efficient set theorem It is from this set of efficient portfolios that the investor will find his or her optimal one All the other feasible portfolios are inefficient portfolio and can be ignoredThe Efficient Set Theorem • The efficient frontier – The efficient frontier or efficient set is a set of portfolio which meets both conditions of the efficient set theorem. – It is from this set of efficient portfolios that the investor will find his or her optimal one. – All the other feasible portfolios are inefficient portfolio and can be ignored