Unit-3 Modern Portfolio Theory
Definition and Assumptions of Modern Portfolio Theory
Definition Modern Portfolio Theory (MPT), introduced by Harry Markowitz in 1952, provides a frame...
Return and Risk on Portfolio
Portfolio Return Portfolio return is the overall gain or loss achieved by a combination of invest...
Markowitz Efficient Frontier
The Efficient Frontier is a fundamental concept in Modern Portfolio Theory (MPT) introduced by Ha...
Capital Asset Pricing Model
The Capital Asset Pricing Model (CAPM) is a foundational finance theory that describes the relati...
Single Index Model
Single Index Model The Single Index Model (SIM) is a simplified way to estimate the return of a s...
Arbitrage Pricing Theory
Arbitrage Pricing Theory, developed by Stephen Ross in 1976, is a multi-factor asset pricing mode...
Capital Market Line and Security Market Line
Capital Market Line (CML) The Capital Market Line (CML) is a graphical representation used in the...
Evaluation of Portfolio
Portfolio evaluation is the process of assessing the performance of an investment portfolio to de...