Opportunity set. The possible expected return and standard deviation pairs of all portfolios that can be constructed from a given set of assets.

What is an opportunity set in economics?

From Wikipedia, the free encyclopedia. A budget set or opportunity set includes all possible consumption bundles that someone can afford given the prices of goods and the person's income level. The budget set is bounded above by the budget line.

What does portfolio opportunity set mean?

Given a set of assets, the total number of portfolios that can be constructed at different levels of risk and expected returns. The portfolio opportunity set helps an investor construct a portfolio with the assets he/she has at his/her risk tolerance.