Modern Portfolio Theory
Professor Harry Markowitz published his doctoral thesis 'Portfolio Selection' in 1952, that marked the beginning of modern portfolio theory (MPT). He demonstrated that for every level of risk it is possible to construct an investment portfolio that, mathematically, delivers the maximum return. A portfolio created according to MPT will place the portfolio on an efficient frontier where for every level of risk there is a portfolio with the highest expected return, and for every level of return their is a portfolio with the lowest anticipated risk.










