PT - JOURNAL ARTICLE AU - Craig L. Israelsen TI - A More Efficient Frontier AID - 10.3905/jii.2011.2.1.066 DP - 2011 May 31 TA - The Journal of Index Investing PG - 66--70 VI - 2 IP - 1 4099 - https://pm-research.com/content/2/1/66.short 4100 - https://pm-research.com/content/2/1/66.full AB - By combining more asset classes, the slope of the classic efficient frontier steepens considerably—which is good news for investors desiring better risk-adjusted performance. Rather than evaluating a portfolio that simply contains various combinations of cash and large U.S. stocks, a multiple asset portfolio is evaluated in lieu of large U.S. stocks. When substituting a multi-asset portfolio in place of U.S. large stocks, the efficient frontier is significantly steeper, indicating superior risk/return characteristics.TOPICS: Portfolio construction, portfolio theory, wealth management