Investment Strategy
Modern Portfolio Theory = Asset Allocation
Modern portfolio theory
was introduced by Harry
Markowitz with his paper
“Portfolio Selection,”
which appeared in the
1952 Journal of Finance.
Modern Portfolio Theory
Thirty-eight years later, he
shared a Nobel Prize with
Merton Miller and William
Sharpe for what has
become a broad theory for
portfolio selection.
Asset allocation and diversification do not guarantee a profit or eliminate the risk of loss.
Source: Riskglossary.com
1
Diversify
Optimize
Rebalance