The efficient frontier helps investors maximize returns for a given risk level. It guides portfolio diversification based on theoretical returns and asset correlations. Robo-advisors use it to ...

Studies show that the theory behind the efficient frontier is much sounder than its real-world application.

The efficient frontier is defined as the set of portfolios which maximizes expected return for a given level of risk. The theory was developed by Nobel laureate and economist, Harry Markowitz, and ...

New Frontier's results aren't spectacular, but their portfolios with 40/60 and 60/40 stock/bond mixes have outperformed benchmarks, net of fees, by more than a percentage point since 2004 .

The efficient frontier is subject to shifts that MPT may not accurately represent. Article Sources Investopedia requires writers to use primary sources to support their work.

The Efficient Frontier is the centerpiece of MPT. Most advisors, especially robos, stop here. But most don't realize that another Nobel Prize winning theory refines the Efficient Frontier.

One of the classic underpinnings of Modern Portfolio Theory needs an update. In the early 1950s, Harry Markowitz's work on mean-variance optimization blazed a new investing paradigm. His Efficient ...

The impact-efficient frontier: Integrating values into investment decisions has multiple benefits It is a worthy exercise to screen out securities based upon business activities or hiring practices ...

Modern Portfolio Theory plays a role in academic finance, but for Dave Basten of API Funds, MPT plays a unique role in investment practice.

 This week, I speak with Bill Bernstein, neurologist, investor, author and co-founder of Efficient Frontier Advisors about his unique career path from science to finance and how he uses lessons lea ...

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