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Q » Define modern portfolio theory (MPT).

Steven

06 Dec, 2025

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A » Modern Portfolio Theory (MPT), developed by Harry Markowitz, is a framework for constructing an investment portfolio that aims to maximize returns for a given level of risk. It emphasizes diversification to reduce risk and utilizes mathematical models to optimize the allocation of assets. By assessing the expected return and risk of different portfolios, MPT helps investors make informed decisions to achieve an efficient balance of risk and return.

Michael

06 Dec, 2025

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A »Modern Portfolio Theory (MPT) is a financial framework that helps investors manage risk and maximize returns by diversifying their portfolios. It suggests that investors can optimize their investments by allocating assets based on their risk tolerance and expected returns, thereby achieving the highest possible return for a given level of risk.

David

06 Dec, 2025

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