Modern Portfolio Theory (MPT)

Financial Markets History

A framework developed by Harry Markowitz for constructing investment portfolios that maximize expected return for a given level of risk through diversification.

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Unit 11: asset classes portfolio

Financial Markets History

Related Terms

Efficient frontier

The set of portfolios offering the highest expected return f...

Diversification

The strategy of spreading investments across different asset...

Capital Asset Pricing Model (CAPM)

A model predicting that an investment's expected return equa...