We think of the “frontier” as the wild border or no man’s land between two countries. But oddly enough, in terms of financial models it is not the most dangerous place to be but the most efficient! It defines the border between too little risk to accomplish (efficient) your financial goals, and more risk than you need to take to get the job done.
The question I am posing is this: can an investor invest efficiently (on that efficient frontier) while considering the effect of the investments? Or, put another way: is there a neutral to positive correlation between the human and environmental impact of an investment and the financial risk/return?
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