Modern portfolio theory argues that an investments risk and return characteristics should not be viewed alone but should be evaluated by how the investment affects the overall portfolios risk. Modern portfolio theory 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 only one type its key insight is that an assets risk and return should not be assessed by itself but by how it contributes to a portfolios overall risk and r. The modern portfolio theory mpt refers to an investment theory that allows investors to assemble an asset portfolio that maximizes expected return for a given level of risk the theory assumes that investors are risk averse for a given level of expected return investors will always prefer the less risky portfolio. Modern portfolio theory the principles of investment management item preview remove circle share or embed this item modern portfolio theory the principles of investment management by rudd andrew clasing henry k publication date 1988 topics investments portfolio management
How it works:
1. Register Trial Account.
2. Download The Books as you like ( Personal use )