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The efficient frontier is the set of all actual portfolios that are optimal for a given set of investments. No other scenario exists with less cost and more benefit or value. The efficient frontier provides you with a starting point by which you can evaluate and decide about your portfolio investments.
You can allow CA Clarity PPM to calculate and suggest a set of optimal portfolio scenarios based on a combination of parameters you set. The calculation is based on a scenario generation algorithm. The algorithm determines how the costs and benefits of individual investments combine to determine the costs and benefits of the portfolio as a whole. Algorithms are adaptive; they can solve practical problems. They are especially suited to scenario optimization because they can efficiently narrow down a large set of solutions quickly.
The efficient frontier requires that you first generate the graph. Without the graph, the candidate scenarios are not built. The graph uses the same algorithm as when a single scenario is generated. However, the budgeted cost amount is incremented over an investment range to produce a set of candidate scenarios. Using the efficient frontier, you can see budgeted benefit trends and determine whether setting a higher or lower investment amount increases your portfolio ROI.
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