Browse:  #  A  B  C  D  E  F  G  H  I  J  K  L  M  N  O  P  Q  R  S  T  U  V  W  X  Y  Z 

Modern Portfolio Theory - MPT

Modern Portfolio Theory - MPT Definition

Modern Portfolio Theory (MPT) is an investment strategy that seeks to construct portfolios to optimize expected return by considering the relationship between risk and return. The theory emphasizes that risk is an inherent part of higher reward. The risk of a  stock should be examined  in relation to how that stock's price changes compared to the variation in price of the market portfolio. According to the theory first published by  Harry Markowitz it is possible to build  optimal portfolios offering the maximum possible expected return for a given level of risk.








Ask a Question

Learn the famous formula for money-making, based upon the THIRTEEN PROVEN STEPS TO RICHES! Get your FREE Copy & Instant Access to Think and Grow Rich by Napoleon Hill just by signing up.
 
   
Newsletter cover
Browse:  #  A  B  C  D  E  F  G  H  I  J  K  L  M  N  O  P  Q  R  S  T  U  V  W  X  Y  Z