PortfolioTheorien
PortfolioTheorien, also known as Portfolio Theory, refers to a set of financial economics models that aim to explain how investors can construct portfolios to maximize expected returns for a given level of risk or minimize risk for a given level of expected return. The foundational concept was laid out by Harry Markowitz in his seminal 1952 paper, "Portfolio Selection."
The core idea of Portfolio Theory is diversification. By combining assets that are not perfectly correlated,
Key elements of Portfolio Theory include expected return, risk (typically measured by standard deviation or variance),