Modern Portfolio Theory and Investment Management

Desmond Corner, David Mayes and R. Woodward

Chapter 1 in Modern Portfolio Theory and Financial Institutions, 1983, pp 1-20 from Palgrave Macmillan

Abstract: Abstract Modern Portfolio Theory (MPT) had its origins in the U.S.A. during the 1950’s, and grew out of attempts by researchers (most notably Markowitz 1952, 1959 and Tobin 1958) to find mathematically ‘efficient portfolios’, that is, security combinations which resulted in maximum expected returns for given levels of risk (normally measured by the variance of investment returns). Unfortunately, the excessive computational requirements as well as the sophisticated mathematics underlying MPT, prevented this academic work from reaching the investment community for most of the 1950’s and 1960’s. Fortunately, the increasing availability (and decreasing costs) of both financial information and computational capacity of computers has now resulted in the widespread use of MPT by academics and practitioners alike, especially in the U.S.A.

Keywords: Abnormal Return; Share Price; Market Efficiency; Portfolio Manager; Security Price (search for similar items in EconPapers)
Date: 1983
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-349-05843-3_1

Ordering information: This item can be ordered from
http://www.palgrave.com/9781349058433

DOI: 10.1007/978-1-349-05843-3_1

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().