Difference between revisions of "Modern Portfolio Theory"
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Latest revision as of 15:22, 25 September 2021
Definition
Modern Portfolio Theory (MPT) was introduced by Markowitz (1952) as an extension of Expected Utility Theory as an application to the analysis of investment portfolios
The theory posits risk-averse individuals constructing a Diversified Portfolio that maximizes the individual's utility by maximizing financial portfolio returns for a given level of Risk.
