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Efficient Frontier - Risk Adjusted Returns
A similar graphic developed by SeaQuation to demonstrate risk and return in relation to the already discussed hurdle rates might look like the example depicted in figure 4.

In this example, which uses dummy data, it can be seen that the higher-risk elements of the portfolio do not fully clear the hurdle rates as indicated by the dotted lines: the upper line indicating bull market expected returns and the lower line indicating bear market expectations.


These are examples of the typical metrics and graphics that may be used to manage effectively and actively the value of the IT investment portfolio..