A curved line on a risk/reward graph showing the combinations of different securities which produce the maximum expected return for a given level of risk or minimise risk for a given level of return.

One of the classic underpinnings of Modern Portfolio Theory needs an update. In the early 1950s, Harry Markowitz's work on mean-variance optimization blazed a new investing paradigm. His Efficient ...

With the publication of his simply titled dissertation, "Portfolio Selection," 55 years ago, Harry Markowitz, a doctoral candidate in economics at the University of Chicago, presented the investment ...

It is a worthy exercise to screen out securities based upon business activities or hiring practices that are inconsistent with an investors’ belief system, writes Permit Capital Advisors Co–CEO and ...

I use a form of the Efficient Frontier (EF) from Modern Portfolio Theory that allocates non-negative weights to a proposed portfolio. Using FAANG as a metric, the returns on test ‘portfolios’ since ...

The efficient frontier is defined as the set of portfolios which maximizes expected return for a given level of risk. The theory was developed by Nobel laureate and economist, Harry Markowitz, and has ...