Course 501: Why Bother with Investment Theory?
Modern Portfolio Theory
In this course
1 Introduction
2 Efficient Markets Theory
3 Modern Portfolio Theory
4 The Investing Pyramid
5 What Goes Where: The Art of Asset Location
6 Factor Investing
7 Behavioral Pitfalls
8 The Bucket Approach to Retirement Allocation
9 What’s the Right Foreign Allocation?

Just call Harry Markowitz the Dean of Diversification. Back in the 1950s, Markowitz pointed out what is now obvious: The more return you can expect from an investment, the greater the risk inherent in that investment. Modern Portfolio Theory says that you can limit your volatility by spreading your risk among different types of investments.

We'll detail the ins and outs of MPT in Portfolio 503.

Next: The Investing Pyramid >>

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