A Simplified Perspective of the Markowitz Portfolio Theory

Global Journal of Business Research, v. 7 (1) pp. 59-70, 2013

12 Pages Posted: 29 Jan 2013

See all articles by Myles E. Mangram

Myles E. Mangram

Swiss Management Centre University (Switzerland)

Date Written: 2013

Abstract

Noted economist, Harry Markowitz (“Markowitz) received a Nobel Prize for his pioneering theoretical contributions to financial economics and corporate finance. His innovative work established the underpinnings for Modern Portfolio Theory — an investment framework for the selection and construction of investment portfolios based on the maximization of expected portfolio returns and simultaneous minimization of investment risk. This paper presents a simplified perspective of Markowitz’ contributions to Modern Portfolio Theory, foregoing in-depth presentation of the complex mathematical/statistical models typically associated with discussions of this theory, and suggesting efficient computer-based ‘short-cuts’ to these performing these intricate calculations.

Keywords: Markowitz Portfolio Theory, Modern Portfolio Theory, Portfolio Investing, Investment Risk

JEL Classification: G30, G32, G11, G00, G20

Suggested Citation

Mangram, Myles E., A Simplified Perspective of the Markowitz Portfolio Theory (2013). Global Journal of Business Research, v. 7 (1) pp. 59-70, 2013. Available at SSRN: https://ssrn.com/abstract=2147880

Myles E. Mangram (Contact Author)

Swiss Management Centre University (Switzerland) ( email )

Balz Zimmermannstrasse 7
Transknowlogy Campus
Zuerich, CH-8302
Switzerland

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