Post-modern portfolio theory (or "PMPT") is an extension of the traditional modern portfolio theory (“MPT”, also referred to as Mean-Variance Analysis or “MVA”). Both theories propose how rational investors should use diversification to optimize their portfolios, and how a risky asset should be priced.

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  • Post-modern portfolio theory (or "PMPT") is an extension of the traditional modern portfolio theory (“MPT”, also referred to as Mean-Variance Analysis or “MVA”). Both theories propose how rational investors should use diversification to optimize their portfolios, and how a risky asset should be priced.
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  • Post-modern portfolio theory (or "PMPT") is an extension of the traditional modern portfolio theory (“MPT”, also referred to as Mean-Variance Analysis or “MVA”). Both theories propose how rational investors should use diversification to optimize their portfolios, and how a risky asset should be priced.
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  • Post-modern portfolio theory
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