Efficient Frontier Excel Template. The efficient frontier is the set of optimal portfolios that offer the highest expected return for a defined level of risk or the lowest risk for a given level of expected return. The most optimal portfolio is the point where it touches the efficient frontier.
We will look at an example with two publically traded companies, apple (aapl) and amazon. This process can be done easily in microsoft excel, as shown in the example below: As we know an efficient frontier represents the set of efficient portfolios that will give the highest return at each level of risk or the lowest risk for each level of return.