Final answer:
The 'feasible set' pertains to optimization and is used in portfolio diversification to denote all possible combinations of assets aligning with both risk tolerance and desired return outcomes in finance.
Step-by-step explanation:
The term 'feasible set' is commonly used in the context of optimization, particularly in fields such as economics, finance, and operations research. It refers to the set of all possible points that satisfy certain constraints, typically within an optimization problem. In the context of the seminar given by a firm's analyst, the term would most likely relate to the discussion of portfolio diversification. Portfolio diversification is an investment strategy where a wide variety of investments are included within a portfolio to reduce the risk. The feasible set, in this scenario, would include all the possible combinations of assets that could be included in a portfolio that both meet the investor's risk tolerance and provide the desired return outcomes.
For example, an investor may be looking at different combinations of stocks and bonds to include in their portfolio. Their feasible set would be the combination of stocks and bonds that provides the best balance of risk and expected returns, based on the investor's goals and market conditions.
In summary, the feasible set is integral in determining portfolio diversification as it illustrates the range of different portfolios that could be constructed given a set of constraints and objectives. This concept is rooted in the broader topic of optimization within the discipline of finance and economics.