About Mean-Variance Optimization:
Mean-variance optimization is a quantitative method used to construct an investment portfolio that balances expected return and risk (measured by variance or volatility). The goal is to find portfolios that offer the highest expected return for a given level of risk, or the lowest risk for a given expected return. The set of such portfolios forms the "efficient frontier." This tool helps identify a range of such portfolios, including the one with the lowest overall volatility.
