Introduction to Why Bother with Investment Theory?

Theory. We hated it in college. What practical use would the Pythagorean theorem or deconstructionism have in our lives?

Many feel the same way about investment theory. Explaining Modern Portfolio Theory to your colleagues at a cocktail party may make you seem erudite, but will understanding it make you a better investor? Yes, it can. The trick is putting the theory in context.

This short course will briefly introduce some of the major topics in portfolio theory, those ideas that form the basis of how people invest and build portfolios. We'll also summarize some ongoing investment debates. By questioning many of the old rules and offering their theories, today's financial scholars and observers prove that investing is a learning experience that never ends.