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 (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 ...

Skylar Clarine is a fact-checker and expert in personal finance with a range of experience including veterinary technology and film studies. If you were to craft the perfect investment, you would ...

Sean Ross is a strategic adviser at 1031x.com, Investopedia contributor, and the founder and manager of Free Lances Ltd. Chip Stapleton is a Series 7 and Series 66 license holder, CFA Level 1 exam ...

Modern portfolio theory, the idea that the efficiency of investments can be managed by diversification of asset classes, was introduced in 1952 then popularized by a book at the end of that decade.