"For example, the often-cited '60/40' portfolio ... Applying MPT to your portfolio. At the core of Modern Portfolio Theory lies the concept of diversification. For most investors, this principle ...

Modern portfolio theory (MPT) and behavioral finance represent differing schools of thought that attempt to explain investor behavior. Perhaps the easiest way to think about their arguments and ...

That’s why at Realized, we leverage Modern Portfolio Theory, or MPT, when creating our clients’ investment portfolios. From my perspective, true diversification is more than just a balance of ...

The optimism surrounding U.S. equity markets is understandable, yet no trend lasts forever. Diversification remains the only ...

Modern Portfolio Theory leverages the Sharpe ratio to enhance portfolio construction by emphasizing asset class correlations – especially in fixed income. Using Morningstar index data ...