8.1 Portfolio Theory

In this section

• Modern Portfolio Theory: Maximizing Returns and Minimizing Risk
  Explore the foundational principles of Modern Portfolio Theory (MPT), its impact on investment strategies, and how it revolutionizes portfolio management by balancing risk and return.
• Efficient Frontier in Portfolio Management: Maximizing Returns and Minimizing Risks
  Explore the efficient frontier's role in portfolio management, learn how to construct it, and understand its significance in optimizing investment decisions.
• Capital Market Line and Security Market Line: Understanding Portfolio and Security Analysis
  Explore the Capital Market Line and Security Market Line, key concepts in portfolio theory and the Capital Asset Pricing Model (CAPM), essential for understanding risk and return in financial markets.
• Capital Asset Pricing Model: Understanding Risk and Return
  Explore the Capital Asset Pricing Model (CAPM), its assumptions, applications, and limitations in financial analysis and portfolio management.
• Limitations of Portfolio Theory: Critiques and Real-World Challenges
  Explore the limitations of Modern Portfolio Theory and CAPM, examining real-world factors, market efficiency, investor behavior, and alternative models.