FIN350 W3Assignment.docx FIN350 Week 3 Assignment Grantham University Views on Mode

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FIN350 W3Assignment.docx FIN350 Week 3 Assignment Grantham University Views on Modern Portfolio Theory. The Modern Portfolio Theory (MPT) refers to an investment theory that allows investors t... o assemble an asset portfolio that maximizes expected return for a given level of risk. The theory assumes that investors are risk-averse; for a given level of expected return, investors will always prefer the less risky portfolio. [ CITATION Wha21 \l 1033 ] This will diversify the investor™s portfolio with a combination of high and low risk investments. Hence, the ability to capitalize on their investment portfolio. Harry Markowitz, an economist, in 1952 wrote a paper that contained theories to help an investor to diversify their portfolio to gain the most profit from their investments. This paper earns him the Nobel Prize in Economics. The name of his paper is œPortfolio Selection and was published in the Journal o. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [Show More]

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