In 1952, Harry Markowitz published a paper called “Portfolio Selection” in The Journal of Finance, setting out what he called the modern portfolio theory (MPT). It caught on, inspired other groundbreaking research, and was eventually renamed Markowitz portfolio theory in his honor.

2024年8月2日 · Harry Markowitz (born 1927) is a Nobel Prize-winning American economist best known for developing Modern Portfolio Theory (MPT), a groundbreaking investment strategy based on his...

Modern portfolio theory (MPT), or mean-variance analysis, is a mathematical framework for assembling a portfolio of assets such that the expected return is maximized for a given level of risk. It is a formalization and extension of diversification in investing, the idea that owning different kinds of financial assets is less risky than owning ...

2023年8月29日 · American economist Harry Markowitz pioneered this theory in his paper "Portfolio Selection," which was published in the Journal of Finance in 1952. He was later awarded a Nobel Prize for...

It is an investment theory based on the idea that risk-averse investors can construct portfolios to optimize or maximize expected return based on a given level of market risk, emphasizing that risk is an inherent part of higher reward. It is one of the most important and influential economic theories dealing with finance and investment.

2023年6月22日 · The research that earned Markowitz the Nobel Prize involved his “ portfolio theory,” which sought to prove that a diversified, or “optimal,” portfolio—that is, one that mixes assets so as to maximize return and minimize risk—could be practical.

2024年11月7日 · Modern Portfolio Theory (MPT), developed by Harry Markowitz, revolutionized investment strategies by linking risk and return through diversification. It aims to maximize returns for a given risk level. Key concepts include expected return, portfolio risk, the efficient frontier, and capital market lines.

There are three major ways in which portfolio theory differs from the theory of the firm and the theory of the consumer which I was taught. First, it is concerned with investors rather than manufacturing firms or consumers. Second, it is concerned with …

Harry Markowitz is an American economist and creator of the Modern Portfolio Theory (MPT). Markowitz published his piece on MPT in 1952. The Modern Portfolio Theory (MPT) is an asset allocation theory that uses concepts such as correlation, risk, and return to find the optimal portfolio weightings.

At the heart of Markowitz's seminal work lies modern portfolio theory, a framework that introduced the concept of diversification and efficient asset allocation. Markowitz argued that by diversifying investments across a range of assets with different risk and return profiles, investors could reduce risk without sacrificing potential returns.