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Comment
. 2012 Apr 24;109(17):6360-1.
doi: 10.1073/pnas.1205114109. Epub 2012 Apr 18.

Improving biodiversity conservation through modern portfolio theory

Affiliations
Comment

Improving biodiversity conservation through modern portfolio theory

Jonathan Hoekstra. Proc Natl Acad Sci U S A. .
No abstract available

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Conflict of interest statement

The author declares no conflict of interest.

Figures

Fig. 1.
Fig. 1.
An efficient frontier for allocation of resources to optimize balance between reward and risk in an investment portfolio. The arc of the efficient frontier defines the maximum return that can be achieved for a given level of risk and the minimum level of risk that can accompany a given return for an optimized investment portfolio. The efficient frontier is determined by the expected returns, standard deviations, and covariance of available investment options. Asset allocation within an investment portfolio determines where the portfolio sits in relation to the efficient frontier. Investment portfolio A is inefficient, because portfolio B achieves the same return with lower risk, and portfolio C achieves higher return with the same risk. Future investments in portfolio A can be selected to move it closer to the efficient frontier and achieve an optimal balance between reward and risk. In PNAS, the work by Ando and Mallory (7) shows how this financial management tool can be applied to guide investments for conservation of biological diversity.

Comment on

References

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