In the world of Wall Street, 60 years is an eternity. So when a concept like modern portfolio theory remains one of the most popular and successful investing strategies 66 years after it was first ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Gordon Scott has been an active investor and ...

Investing can often feel like navigating a maze of endless options and ever-shifting market conditions. This is where the Modern Portfolio Theory (MPT) comes in, offering a roadmap for making smarter ...

For the average investor, the BogleHead model of a small collection of broad market funds may be the best template for building a diversified long-term portfolio. Today, I will propose a "four fund ...

James Chen, CMT is an expert trader, investment adviser, and global market strategist. Andy Smith is a Certified Financial Planner (CFP®), licensed realtor and educator with over 35 years of diverse ...

If you're an investor, then you owe a word of gratitude to the late Nobel Prize laureate Harry Markowitz and his work on Modern Portfolio Theory (MPT). The development and subsequent implementation of ...

Modern Portfolio Theory (MPT) is an academic practice for optimizing investment portfolios in pursuit of realizing the greatest potential reward for the amount of risk an investor is willing to assume ...

Investing can be complicated with many moving parts, but modern portfolio theory (MPT) is a valuable tool to piece them together efficiently. If you've ever wondered how to construct a well-balanced ...

Before shifting into further discussion about whether these historical numbers provide the most appropriate assumptions for future market performance, it is worth understanding how to choose an asset ...