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 ...

Douglas Stone—author of the new book Navigate the Investment Jungle says that MPT rests on several assumptions, and the coronavirus pandemic has revealed that some of these assumptions are ...

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 ...

One of the strongest pillars of modern finance and modern portfolio theory is the belief that "return is directly correlated to risk." The argument is that, in order to get higher investment returns, ...

Investing can be complicated with many moving parts, but modern portfolio theory (MPT) is a valuable tool to piece them together efficiently. If you've ever wondered how to construct a well-balanced ...

Before shifting into further discussion about whether these historical numbers provide the most appropriate assumptions for future market performance, it is worth understanding how to choose an asset ...