Introduction to Modern Portfolio Theory
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Modern portfolio theory explains the risk/return relationship and how to construct an efficient portfolio.
What you will learn
- Modern Portfolio Theory
- Terminology for Modern Portfolio Theory
- What Is an Efficient Portfolio?
- Pros and Cons of an Efficient Portfolio
What do you know?
Introduction to Modern Portfolio Theory
How do you know you are choosing the right investments for you? It is not all a matter of guesswork. Financial planners have a set of statistical tools that can determine whether your investment portfolio is producing the maximum return for the amount of risk you are willing to accept. As a savvy investor, you need to know about the Modern Portfolio Theory and how it applies to investment selection.