Modern Portfolio Theory - MPT - A theory on how risk averse investors can construct portfolios in order to optimize market risk against expected returns. The theory emphasizes that risk should not be viewed in a negative context, but rather as an inherent part of higher reward. According to the theory, an efficient frontier of optimal portfolios can be constructed offering the maximum possible expected return for a given level of risk.
Modern Portfolio Theory - MPT : a theory on how risk averse investors can construct portfolios in order to optimize market risk against expected returns. the theory emphasizes that risk should not be viewed in a negative context, but rather as an inherent part of higher reward. according to the theory, an efficient frontier of optimal portfolios can be constructed offering the maximum possible expected return for a given level of risk.