Modern Portfolio Theory (MPT) is a widely used practice for optimizing investment portfolios to achieve the greatest potential reward for the amount of risk an investor is willing to assume.

Modern Portfolio Theory (MPT) looks at how risk-averse investors can build portfolios to maximize expected returns based on a given level of risk.

Modern portfolio theory (MPT) details the comparable rates of risk and potential rewards for assets in your portfolio. According to MPT, an investor must take on a higher level of risk to achieve ...