This quantity is maximized on the "efficient frontier" in a theory developed by Harry Markowitz. The Sharpe ratio measures the increase in this quantity per unit increase in standard deviation. Thomas Piketty's Capital in the
This quantity is maximized on the "efficient frontier" in a theory developed by Harry Markowitz. The Sharpe ratio measures the increase in this quantity per unit increase in standard deviation. Thomas Piketty's Capital in the Twenty-First Century makes use of an inequality stating this quantity as greater than "g" or (*) growth. The "internal" variety of this quantity makes the net present value zero. The capital asset pricing model posits a linear relationship between beta, representing risk, and - for 10 points - what rate of profit on investment?
This quantity is maximized on the "efficient frontier" in a theory developed by Harry Markowitz.
(annual) rate of return [or return on investment; or ROI; prompt on "r" or "rate" or "profit"]