# portalloc

Optimal capital allocation to efficient frontier portfolios

## Syntax

## Description

`[`

calculates the optimal risky portfolio and the optimal allocation of funds
between that risky portfolio of `RiskyRisk`

,`RiskyReturn`

,`RiskyWts`

,`RiskyFraction`

,`OverallRisk`

,`OverallReturn`

] = portalloc(`PortRisk`

,`PortReturn`

,`PortWts`

,`RisklessRate`

)`NASSETS`

and the risk-free asset.

**Note**

An alternative for portfolio optimization is to use the `Portfolio`

object for
mean-variance portfolio optimization. This object supports gross or net
portfolio returns as the return proxy, the variance of portfolio returns
as the risk proxy, and a portfolio set that is any combination of the
specified constraints to form a portfolio set. For information on the
workflow when using `Portfolio`

objects, see Portfolio Object Workflow.

`[`

specifies options using one or more optional arguments in addition to the input
arguments in the previous syntax. `RiskyRisk`

,`RiskyReturn`

,`RiskyWts`

,`RiskyFraction`

,`OverallRisk`

,`OverallReturn`

] = portalloc(___,`BorrowRate`

,`RiskAversion`

)

`portalloc(`

when invoked without any output arguments, a graph of the optimal capital
allocation decision is displayed.`PortRisk`

,`PortReturn`

,`PortWts`

,`RisklessRate`

,`BorrowRate`

,`RiskAversion`

)

## Examples

## Input Arguments

## Output Arguments

## References

[1] Bodie, Z., Kane, A., and A.
Marcus. *Investments.* McGraw-Hill Education, 2013.

## Version History

**Introduced before R2006a**