A SIMPLIFIED PERSPECTIVE OF THE MARKOWITZ PORTFOLIO THEORY

Myles E. Mangram

Global Journal of Business Research, 2013, vol. 7, issue 1, 59-70

Abstract: Noted economist, Harry Markowitz (Markowitz) received a Nobel Prize for his pioneering theoretical contributions to financial economics and corporate finance. His innovative work established the underpinnings for Modern Portfolio Theory—an investment framework for the selection and construction of investment portfolios based on the maximization of expected portfolio returns and simultaneous minimization of investment risk. This paper presents a simplified perspective of Markowitz’ contributions to Modern Portfolio Theory, foregoing in-depth presentation of the complex mathematical/statistical models typically associated with discussions of this theory, and suggesting efficient computer-based ‘short-cuts’ to these performing these intricate calculations.

Keywords: Markowitz Portfolio Theory; Modern Portfolio Theory; Portfolio Investing; Investment Risk (search for similar items in EconPapers)
JEL-codes: G00 G11 G20 G30 G32 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (18)

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Persistent link: https://EconPapers.repec.org/RePEc:ibf:gjbres:v:7:y:2013:i:1:p:59-70

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