Unleashing the Power of Modern Portfolio Theory: Maximizing Returns while Managing Risk

Modern Portfolio Theory (MPT) Overview: Modern portfolio theory is a mathematical approach that helps in creating an investment portfolio by considering both the potential risks and returns. This theory has evolved since the 1950s and describes the mathematics of constructing an optimal portfolio based upon risk and return parameters. It involves selecting assets that have a correlation with historical returns and that can diversify the portfolio. MPT key component is Diversification meaning that optimal results are achieved by selecting a balanced mix of high-risk/high-return and low-risk/low-return investments, tailored to individual risk tolerance. Objective: This poster is intended to help you all understand the end-to-end process of modern portfolio theory using real-time data. I assure you, it's an interesting one