modern portfolio theory

Description

The theory of finance that attempts to either maximise the profit of an investment equivalent to the risk taken or to reduce the risk for the expected profit of an investment by judiciously choosing the right combination of financial products.

Alternative label

  • MPT

  • mean-variance analysis

Skill type

  • knowledge

Skill reusability level

  • cross-sector skills and competences

Essential skill/competence of

Optional skill/competence of

Status

released

Concept URI

http://data.europa.eu/esco/skill/bcadc519-00f4-43bc-9373-054f4ac717cb