The Portfolio Theory is a mathematical framework for assembling a portfolio of assets that is the quantitative analysis of how investors can diversify the portfolio in order to minimise risk and maximise returns. The theory was introduced by Harry Markowitz in his paper "Portfolio Selection" in 1952. The Modern Portfolio Theory (MPT) is a method for portfolio management to reduce risk in which theory states that, given a desired level of risk, an investor can optimise the expected returns of a portfolio through diversification.
Related Definitions in the Project: The Project Management; Risk Management; Economic Reviews
