modern portfolio theory

[ mod-ern pawrt-foh-lee-oh thee-uh-ree, theer-ee ]

noun

, Finance.

1. a mathematical system for calculating and analyzing the expected returns on assets in order to assemble a portfolio of maximum efficiency, as used in the Markowitz model. : MPT

Word History and Origins

Origin of modern portfolio theory¹

Introduced in 1952 by U.S. economist Harry M. Markowitz ( def )