Post-modern portfolio theory uses downside risk to refine portfolio optimization. Learn how PMPT offers an alternative to modern portfolio theory for risk-adjusted returns.

Investing can often feel like navigating a maze of endless options and ever-shifting market conditions. This is where the Modern Portfolio Theory (MPT) comes in, offering a roadmap for making smarter ...

Modern Portfolio Theory, or MPT, is about maximizing the return investors could get in their investment portfolio considering the risk involved in the investments. If you have a financial planner, or ...

Modern portfolio theory (MPT) and behavioral finance represent differing schools of thought that attempt to explain investor behavior. Perhaps the easiest way to think about their arguments and ...

Modern Portfolio Theory (MPT) is an academic practice for optimizing investment portfolios in pursuit of realizing the greatest potential reward for the amount of risk an investor is willing to assume ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Gordon Scott has been an active investor and ...