The diversification-focused modern portfolio theory has been the investing "rulebook" for decades, but it might be worth ...

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 ...

Lisa Smith is a writer with a passion for financial journalism, contributing to popular media outlets like Investopedia and Bloomberg BNA. Andy Smith is a Certified Financial Planner (CFP®), licensed ...

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 ...

What Is Modern Portfolio Theory? Modern Portfolio Theory is Markowitz’s theory regarding maximizing the return investors could get in their investment portfolio considering the risk involved in the ...

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 ...