A curved line on a risk/reward graph showing the combinations of different securities which produce the maximum expected return for a given level of risk or minimise risk for a given level of return.

In the early 1950s, Harry Markowitz's work on mean-variance optimization blazed a new investing paradigm. His Efficient Frontier produced a variety of insights, not the least of which is the value of ...

Learn how Harry Markowitz's Modern Portfolio Theory transformed investment strategies by focusing on diversified portfolios ...

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 ...

Among academicians, few have made a real-world impact as far-reaching as Harry Markowitz, the father of modern portfolio theory. Markowitz devised his seminal theory as a 23-year-old Ph.D. student at ...

It is a worthy exercise to screen out securities based upon business activities or hiring practices that are inconsistent with an investors’ belief system, writes Permit Capital Advisors Co–CEO and ...

The efficient frontier is defined as the set of portfolios which maximizes expected return for a given level of risk. The theory was developed by Nobel laureate and economist, Harry Markowitz, and has ...