Principles of Finance: Efficient Portfolios and Risk Management

This lecture covers the concept of efficient portfolios in finance, exploring the relationship between expected return and volatility. It delves into the Capital Asset Pricing Model (CAPM), the efficient frontier, and the risk-free asset. The instructor explains how to identify the tangent portfolio, the minimum variance frontier, and the Sharpe ratio. The lecture also discusses the impact of diversification on risk reduction and the trade-off between risk and return in portfolio management.