Risk-Return Chart

• A Markowitz optimised efficient frontier gives <br> a sense of the theoretically possible range of <br> outcomes (solid blue and dashed lines), although <br> practical portfolio constraints may restrict <br> actual outcomes. In this example the opportunity <br> set encompassed by the Markowitz frontier is <br> enlarged by the inclusion of the benchmark <br> as an asset (solid blue line), potentially of interest if <br> an asset that tracks the benchmark index is<br> available.