Abstract

Harry Markowitz discovered Modern Portfolio Theory while completing his doctorate thesis at the University of Chicago, with the goal of finding the optimal investment portfolio in mind. Under Markowitz’s work, a portfolio, or a collection of securities, is studied using a combination of concepts from portfolio theory. These concepts include expected value, variance, and covariance. They combine to produce an expected return and risk for each attainable portfolio, which are then compared with one another to create an efficient frontier. The portfolios that live on the efficient frontier produce the most return for a given level of risk and are determined most desirable for portfolio managers because it returns the most bang for their buck.

Advisor

Wooster, Robert

Department

Mathematics

Disciplines

Finance and Financial Management | Portfolio and Security Analysis

Publication Date

2016

Degree Granted

Bachelor of Arts

Document Type

Senior Independent Study Thesis

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© Copyright 2016 Adam J. Coppock