Modern Portfolio Theory (MPT) | Definition How It Works Modern Portfolio Theory is a financial framework that was developed by Harry Markowitz in the 1950s and earned him a Nobel Prize MPT aims to maximize returns while minimizing risk by diversifying investments across different asset classes
Modern portfolio theory - Wikipedia Economist Harry Markowitz introduced MPT in a 1952 paper, [1] for which he was later awarded a Nobel Memorial Prize in Economic Sciences; see Markowitz model In 1940, Bruno de Finetti published [4] the mean-variance analysis method, in the context of proportional reinsurance, under a stronger assumption The paper was obscure and only became
Markowitz Model - What Is It, Assumptions, Diagram, Formula The Markowitz model of selection mainly focuses on portfolio diversification It separates stocks into high-risk and low-risk assets The Harry Markowitz Model was introduced in 1952 through the journal of finance Harry Markowitz won the Nobel prize for his contribution in 1990 Key Takeaways The Markowitz model is an investing strategy