Modern portfolio theory (MPT) is an investing strategy that looks to maximize returns. After all, we like making money, but we dislike losing money even more. Generally speaking, of course. That was ...

In the world of Wall Street, 60 years is an eternity. So when a concept like modern portfolio theory remains one of the most popular and successful investing strategies 66 years after it was first ...

Investing can often feel like navigating a maze of endless options and ever-shifting market conditions. This is where the Modern Portfolio Theory (MPT) comes in, offering a roadmap for making smarter ...

The dramatic volatility and portfolio declines of the financial crisis led many advisors to blame modern portfolio theory. Yet after a careful look at its principles, it s obvious that they are sound.

Efficient frontier diagrams do not actually show the asset allocations of portfolios on the efficient frontier, but this information is also available. Exhibit 1.3 provides an example of ten ...

The recent and volatile twists and turns of today’s stock market undoubtedly have individuals confused as to where it might be headed next – and perhaps a bit nervous about their long-term investments ...

2020 has already seen the quickest bear market sell-off and counter-rally in history. With one of the most consequential elections in U.S. history just six weeks away and another virus wave likely ...

Harry Markowitz’s dissertation on portfolio selection in 1952 focused on the value of combining two risky investments that do not move in lockstep with one another. Markowitz’s cutting-edge research ...