DEFINITION of '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.
INVESTOPEDIA EXPLAINS '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.
RELATED TERMS

Multiple Discriminant Analysis ...
A statistical technique used to reduce the differences between ... 
Portfolio
A grouping of financial assets such as stocks, bonds and cash ... 
Diversification
A risk management technique that mixes a wide variety of investments ... 
Modern Portfolio Theory  MPT
A theory on how riskaverse investors can construct portfolios ... 
Correlation
In the world of finance, a statistical measure of how two securities ... 
Risk
The chance that an investment's actual return will be different ...
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