Investing can often feel like navigating a maze of endless options and ever-shifting market conditions. This is where the Modern Portfolio Theory (MPT) comes in, offering a roadmap for making smarter ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Gordon Scott has been an active investor and ...

Sean Ross is a strategic adviser at 1031x.com, Investopedia contributor, and the founder and manager of Free Lances Ltd. Chip Stapleton is a Series 7 and Series 66 license holder, CFA Level 1 exam ...

Modern Portfolio Theory (MPT) is an academic practice for optimizing investment portfolios in pursuit of realizing the greatest potential reward for the amount of risk an investor is willing to assume ...

Before shifting into further discussion about whether these historical numbers provide the most appropriate assumptions for future market performance, it is worth understanding how to choose an asset ...