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.
Coppock, Adam J., "Applying Modern Portfolio Theory to Optimal Portfolio Construction" (2016). Senior Independent Study Theses. Paper 7237.
Finance and Financial Management | Portfolio and Security Analysis
Modern Portfolio Theory, Investment Banking, Probability Theory, Nonlinear Programming Models
Bachelor of Arts
Senior Independent Study Thesis
© Copyright 2016 Adam J. Coppock