The objective of modern portfolio theory is to identify asset combinations that deliver the best possible return for a specific level of risk, or the lowest risk for a targeted return. You achieve ...

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 ...