Who is 'Harry Markowitz'
A Nobel Memorial Prize winning economist who devised the modern portfolio theory in 1952. Markowitz's theories emphasized the importance of portfolios, risk, the correlations between securities and diversification. His work changed the way that people invested.
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BREAKING DOWN 'Harry Markowitz'
Prior to Markowitz's theories, emphasis was placed on picking single highyield stocks without any regard to their effects on portfolios as a whole. Markowitz's portfolio theory would be a large stepping stone towards the creation of the capital asset pricing model.
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Where did Modern Portfolio Theory (MPT) come from?
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How is portfolio variance reduced in Modern Portfolio Theory?
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How is correlation used in modern portfolio theory?
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What level of correlation among investments will guarantee market returns but have ...
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