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 ...

Modern portfolio theory (MPT) is a fundamental wealth management strategy that won the Nobel Prize in economics in 1990. There are three components of MPT: Pick a fully diversified portfolio—meaning ...

In the world of Wall Street, 60 years is an eternity. So when a concept like modern portfolio theory remains one of the most popular and successful investing strategies 66 years after it was first ...

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 ...

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 ...