Efficient Frontier and Perception of Investors: A Risk Analysis

Abstract

Purpose: Most of the investors today invest in random portfolios to earn expected return on their investment but they fail to follow a technical method to select a portfolio. Due to this the investors fail to meet their expectations. To help such investors the study has thrown a light on utilization of efficient frontier.

Design /methodology/Approach: The design tailed in this study are exploratory and descriptive research along with qualitative and quantitative data. These were done to understand the perception of the investors towards efficient frontier concept. 

Findings: Majority of the investors understood and accepted the concept of efficient frontier which lead to a major shift in selecting finest portfolio. This brought a change in investors risk taking capability.

Originality/ Value: The novelty lies in connecting the primary data collected from investors to the secondary data of portfolios for performing pre and post evaluation.