This Is the Most Underrated Chart for Building Your Investment Portfolio

Most investors make an important mistake when they're building their investment portfolio, and it can be a costly one. Luckily, we can all take valuable insights from an important chart that's used by professional asset managers. This chart won't create the perfect portfolio for you, but it provides essential guidelines for building an investment allocation.

The efficient frontier is a chart that plots portfolio returns against portfolio risk.

Source: RBC Wealth Management -- "Why does asset allocation matter?"

Source Fool.com