What Is The Efficient Frontier?

The Efficient Frontier is part of the Modern Portfolio Theory (MPT) that attempts to plots the optimal portfolios along the curve with the highest expected return possible for the given amount of risk. Mathematically the Efficient Frontier is the intersection of the Set of Portfolios with Minimum Variance (MVS) and the Set of Portfolios with Maximum Return. As per the market the S&P 500 represents the most efficient risk/reward portfolio.