What does Modern Portfolio Theory mean?
Definitions for Modern Portfolio Theory
mod·ern port·fo·lio the·o·ry
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Wikipedia
Modern portfolio theory
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 only one type. Its key insight is that an asset's risk and return should not be assessed by itself, but by how it contributes to a portfolio's overall risk and return. It uses the variance of asset prices as a proxy for risk.Economist Harry Markowitz introduced MPT in a 1952 essay, for which he was later awarded a Nobel Prize in Economics; see Markowitz model.
Numerology
Chaldean Numerology
The numerical value of Modern Portfolio Theory in Chaldean Numerology is: 8
Pythagorean Numerology
The numerical value of Modern Portfolio Theory in Pythagorean Numerology is: 7
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"Modern Portfolio Theory." Definitions.net. STANDS4 LLC, 2024. Web. 25 Sep. 2024. <https://www.definitions.net/definition/Modern+Portfolio+Theory>.
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