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    Modern Portfolio Theory: Modern Portfolio Theory, Unleashing Wealth through Strategic Investing
    Modern Portfolio Theory: Modern Portfolio Theory, Unleashing Wealth through Strategic Investing
    Modern Portfolio Theory: Modern Portfolio Theory, Unleashing Wealth through Strategic Investing
    Ebook343 pages3 hours

    Modern Portfolio Theory: Modern Portfolio Theory, Unleashing Wealth through Strategic Investing

    By Fouad Sabry

    ()

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    About this ebook

    What is Modern Portfolio Theory


    Modern portfolio theory (MPT), or mean-variance analysis, is a mathematical framework for assembling a portfolio of assets such that the expected return is maximized for a given level of risk. It is a formalization and extension of diversification in investing, the idea that owning different kinds of financial assets is less risky than owning only one type. Its key insight is that an asset's risk and return should not be assessed by itself, but by how it contributes to a portfolio's overall risk and return. The variance of return is used as a measure of risk, because it is tractable when assets are combined into portfolios. Often, the historical variance and covariance of returns is used as a proxy for the forward-looking versions of these quantities, but other, more sophisticated methods are available.


    How you will benefit


    (I) Insights, and validations about the following topics:


    Chapter 1: Modern portfolio theory


    Chapter 2: Standard deviation


    Chapter 3: Variance


    Chapter 4: Multivariate normal distribution


    Chapter 5: Correlation


    Chapter 6: Capital asset pricing model


    Chapter 7: Covariance matrix


    Chapter 8: Pearson correlation coefficient


    Chapter 9: Propagation of uncertainty


    Chapter 10: Beta (finance)


    Chapter 11: Tracking error


    Chapter 12: Diversification (finance)


    Chapter 13: Merton's portfolio problem


    Chapter 14: Single-index model


    Chapter 15: Post-modern portfolio theory


    Chapter 16: Risk measure


    Chapter 17: Treynor-Black model


    Chapter 18: Goal-based investing


    Chapter 19: Two-moment decision model


    Chapter 20: Mutual fund separation theorem


    Chapter 21: Financial correlation


    (II) Answering the public top questions about modern portfolio theory.


    (III) Real world examples for the usage of modern portfolio theory in many fields.


    Who this book is for


    Professionals, undergraduate and graduate students, enthusiasts, hobbyists, and those who want to go beyond basic knowledge or information for any kind of Modern Portfolio Theory.

    LanguageEnglish
    PublisherOne Billion Knowledgeable
    Release dateFeb 17, 2024
    Modern Portfolio Theory: Modern Portfolio Theory, Unleashing Wealth through Strategic Investing

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