Efficient frontier We could examine a number of two-asset portfolios and derive their curves by changing the weights of the assets From these the efficient frontier is derived The efficient frontier is the envelope curve of all of the individual curvesEfficient Frontier ◼ We could examine a number of two-asset portfolios and derive their curves by changing the weights of the assets. ◼ From these the efficient frontier is derived. ◼ The efficient frontier is the envelope curve of all of the individual curves