Modern portfolio theory (MPT) is an approach to quantifying risk and return in a portfolio of assets. Developed in 1959 by Harry Markowitz, MPT is the foundation for present-day principles of investment diversification. It emphasizes the portfolio rather than individual assets, and how assets perform in relation to each other based on the assumption that investors can benefit from diversification when asset class returns do not move in lock step with one another.
Barry Goldsmith
| APA | Barry Goldsmith. (2010). modern portfolio theory (mpt). Retrieved October 1, 2026, from http://smartdefine.org/modern_portfolio_theory_(mpt)/definitions/1158304 |
| Chicago | Barry Goldsmith. 2010. "modern portfolio theory (mpt)" http://smartdefine.org/modern_portfolio_theory_(mpt)/definitions/1158304 (accessed October 1, 2026). |
| Harvard | Barry Goldsmith 2010, modern portfolio theory (mpt), Smart Define, viewed 1 October, 2026, <http://smartdefine.org/modern_portfolio_theory_(mpt)/definitions/1158304>. |
| MLA | Barry Goldsmith. "modern portfolio theory (mpt)" 21 October 2010. Web. 1 October 2026. <http://smartdefine.org/modern_portfolio_theory_(mpt)/definitions/1158304> |