A Guide to Modern Portfolio Theory
SHARE Photo courtesy of siam.pukkato@gmail.com via Getty Images 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 stocks and bonds, U.S. and foreign, small and large companies, etc. Implement your portfolio with diversified, low-cost investments. Rebalance the portfolio on a regular basis. As straightforward as it sounds, sticking with this strategy can be difficult since an investor is never completely concentrated where things are doing ...
Source: worth.com