Portfolio theory, often referred to as Modern Portfolio Theory (MPT), is a framework for constructing and managing investment portfolios in such a way that balances risk and return. Developed by Harry Markowitz in the 1950s, MPT introduced several key concepts that have since become fundamental to finance and investment management. Here are the core ideas: ### 1. **Diversification:** - MPT emphasizes the importance of diversification in reducing risk.
Articles by others on the same topic
There are currently no matching articles.