What is Modern Portfolio Theory?

Harry Markowitz is deservedly called the father of Modern Portfolio Theory, but what was his risk-reducing investing concept?

Paul D. Kaplan 25 July, 2018 | 2:55PM
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Paul Kaplan: I'm Paul Kaplan, research director at Morningstar Canada. The Nobel Memorial Prize in Economic Sciences, the most prestigious prize in economics, was first awarded in 1969, But it wasn't until 1990 that the Nobel was awarded to economists for their work in finance and investing. Today I look back on the major contribution of one of the 1990 Nobel laureates: Harry Markowitz. He is deservedly called the father of Modern Portfolio Theory.

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Paul D. Kaplan  Paul D. Kaplan, Ph.D., CFA, is director of research with Morningstar Canada.