Modern Portfolio Theory: Difference between revisions
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imported>Doug Williamson m (Spacing 22/8/13) |
imported>Doug Williamson (Punctuation, cross references and categorisation.) |
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(MPT). | (MPT). | ||
Developed by Harry Markowitz in the 1950s | Developed by Harry Markowitz in the 1950s. | ||
Modern portfolio theory quantifies the expected return to a portfolio with reference to | Modern portfolio theory quantifies the expected return to a portfolio with reference to: | ||
#Each component’s mean return and standard deviation of returns, and | |||
#The covariance between components’ returns. | |||
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* [[Capital asset pricing model]] | * [[Capital asset pricing model]] | ||
* [[Portfolio]] | * [[Portfolio]] | ||
* [[Capital Market Line]] | |||
* [[Security Market Line]] | |||
[[Category:Corporate_financial_management]] | |||
Latest revision as of 16:05, 25 August 2013
(MPT).
Developed by Harry Markowitz in the 1950s.
Modern portfolio theory quantifies the expected return to a portfolio with reference to:
- Each component’s mean return and standard deviation of returns, and
- The covariance between components’ returns.
