Are the foundations of Harry Markowitz's Modern Portfolio Theory still useful—or just academic noise?
In this episode, we discuss:
• What Modern Portfolio Theory (MPT) is and how it originated
• Why the risk-return tradeoff became central to portfolio construction
• How diversification can actually reduce volatility
• The problems with over-relying on optimization models
• Practical takeaways for building more robust portfolios today
Timestamps:
00:00 – Intro: What is Modern Portfolio Theory?
00:33 – Explaining MPT
04:00 – Does MPT work?
06:03 – Can we take away anything from MPT?
06:51 – Outro
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