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Understanding Modern Portfolio Construction

46 Pages Posted: 3 Mar 2016 Last revised: 22 Sep 2016

Cullen O. Roche

Orcam Financial Group

Date Written: February 22, 2016

Abstract

Over the last 75 years there have been great strides in modern finance, portfolio theory and asset allocation strategies. Despite this progress the process of portfolio construction remains grounded in many theoretical concepts that can result in inappropriate or unrealistic frameworks. In this paper we provide an overview of the development of these ideas, construct a general foundation for understanding portfolio construction and produce a framework for simplifying, systematizing and streamlining the process in an attempt to establish a realistic and suitable process for portfolio construction.

JEL Classification: G11, G12

Suggested Citation

Roche, Cullen O., Understanding Modern Portfolio Construction (February 22, 2016). Available at SSRN: https://ssrn.com/abstract=2740027 or http://dx.doi.org/10.2139/ssrn.2740027

Cullen O. Roche (Contact Author)

Orcam Financial Group ( email )

San Diego, CA 92024
United States

HOME PAGE: http://orcamgroup.com

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