Post-modern portfolio theory and financial planning

Much work has been done since Modern Portfolio Theory to help financial planners diversify portfolios for their clients to obtain the best outcomes
by Gill Wadsworth 

In March 1952, American economist Dr Harry Markowitz forever changed the way the finance sector thought about investment through a paper titled ‘Portfolio selection’, published in the Journal of Finance. Modern Portfolio Theory (MPT) set in stone the need to diversify assets. Defining risk as volatility, Markowitz argued that this was best managed by spreading investment across asset classes.
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Published: 06 Feb 2019
  • Financial Planning
  • The Review
  • featured
  • Sortino Ratio
  • Sharpe Ratio
  • Risk
  • Post-Modern Portfolio Theory
  • Modern Portfolio Theory
  • financial planning
  • behavioural finance

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