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Further Clarification

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Further Clarification

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Confused Hi,
Thanks for your excellent help thus far. I have read your help section and still need a clarification on the Chart for "Efficient Frontier and the Portfolio Set". There are two parabolas in the chart. Is one for the optimized portfolio and the other is for the test or "input" portfolio? The help section was not clear on this.
thanks again,
Michael
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The blue curves on the efficient frontier chart map the different weightings of assets between 4 main points: maximum return at the top, minimum return at teh bottom, minimum risk to the left and maximum risk to the right.

The right part of the frontier is often inward curving as a result of the risk reduction on combined correlated assets.

The blue point on the chart represents the risk/return of the current portfolio and the green point is the optimized portfolio based on the strategy selected.
 
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