enow.com Web Search

Search results

  1. Results from the WOW.Com Content Network
  2. Modern portfolio theory - Wikipedia

    en.wikipedia.org/wiki/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 ...

  3. Markowitz model - Wikipedia

    en.wikipedia.org/wiki/Markowitz_model

    The portfolio P is the most efficient portfolio, as it lies on both the CML and Efficient Frontier, and every investor would prefer to attain this portfolio, P. The P portfolio is known as the Market Portfolio and is generally the most diversified portfolio. It consists of essentially all shares and securities in the capital market (either long ...

  4. Efficient frontier - Wikipedia

    en.wikipedia.org/wiki/Efficient_frontier

    In modern portfolio theory, the efficient frontier (or portfolio frontier) is an investment portfolio which occupies the "efficient" parts of the risk–return spectrum. Formally, it is the set of portfolios which satisfy the condition that no other portfolio exists with a higher expected return but with the same standard deviation of return (i ...

  5. What Is Portfolio Management?

    www.aol.com/portfolio-management-150054605.html

    Modern portfolio theory, which aims to maximize returns for a given level or risk, can also be integrated into your portfolio management to help you optimize your investments. Investing for ...

  6. A Guide to Modern Portfolio Theory

    www.aol.com/news/guide-modern-portfolio-theory...

    According to modern portfolio theory, there are three rules to be followed to make an investor earn more money with less risk during long periods. The post A Guide to Modern Portfolio Theory ...

  7. Merton's portfolio problem - Wikipedia

    en.wikipedia.org/wiki/Merton's_portfolio_problem

    Merton's portfolio problem is a problem in continuous-time finance and in particular intertemporal portfolio choice. An investor must choose how much to consume and must allocate their wealth between stocks and a risk-free asset so as to maximize expected utility .

  8. Post-modern portfolio theory - Wikipedia

    en.wikipedia.org/wiki/Post-modern_portfolio_theory

    Simply stated, post-modern portfolio theory (PMPT) is an extension of the traditional modern portfolio theory (MPT) of Markowitz and Sharpe. Both theories provide analytical methods for rational investors to use diversification to optimize their investment portfolios.

  9. Portfolio optimization - Wikipedia

    en.wikipedia.org/wiki/Portfolio_optimization

    Modern portfolio theory was introduced in a 1952 doctoral thesis by Harry Markowitz, where the Markowitz model was first defined. [1] [2] The model assumes that an investor aims to maximize a portfolio's expected return contingent on a prescribed amount of risk. Portfolios that meet this criterion, i.e., maximize the expected return given a ...