Definition
The modern portfolio theory (MPT) is a practical method for selecting investments in order to maximize their overall returns within an acceptable level of risk. This mathematical framework is used to build a portfolio of investments that maximize the amount of expected return for the collective given level of risk. American economist Harry Markowitz pioneered this theory in his paper "Portfolio Se
In Panel Profits
In the Panel Profits market platform, Modern Portfolio Theory: What MPT Is and How Investors Use It applies standard portfolio management principles to comic assets and physical collections.
Common mistakes
Do not infer unobserved prices.