Reviewed by Andy Smith Modern portfolio theory (MPT) and behavioral finance represent differing schools of thought that attempt to explain investor behavior. Perhaps the easiest way to think about ...

At the core of Modern Portfolio Theory lies the concept of diversification ... one can mitigate the risk of poor performance in one or a few specific assets. However, MPT goes a step further.

The rate is the main component of many famous theories, such as the capital asset pricing model, modern portfolio theory, and the Black-Scholes model. Although the risk-free rate is hypothetical ...

There’s a vast universe of alternative investments out there that may suit your risk profile and are worthy of a closer look. Let’s discuss. Modern Portfolio Theory was created by Harry ...

Harry Markowitz’s Modern Portfolio Theory (MPT), for which he won a Nobel Prize, reshaped investment management by showing that optimizing a portfolio isn’t just about considering the risk and ...

Download this report now for more on the Modern Portfolio Theory and how Sharpe-optimized, U.S.-focused portfolios can help strike the right balance between risk and reward.