Review on the Modern portfolio theory and optimization model
Zehan Hou, Zeyu Li, Yang Zhou
Available Online April 2017.
- https://doi.org/10.2991/iemss-17.2017.139How to use a DOI?
- Modern Portfolio Theory (MPT), Indexed, Improved, Essential and Dynamic.
- The field of portfolio optimization and risk management are the bases to develop and improve the financial markets and also the financial decisions. It has narrow and broad part of theory. A narrow theory refers to the Modern portfolio theory (MPT); and another version of the theory generalizes the classical theory to accommodate various alternative theories, including the capital asset pricing model and effective securities market theory of capital market theory. At the same time, because of the traditional efficient market hypothesis cannot explain market anomalies, the portfolio theory is facing the challenge of irrational market movements. Then behavioral finance was introduced to tackle the problem. The Topic of modern portfolio theory and the optimization model of development are reviewed in this paper. The analytical models outline the development trend of related fields, pointing out the direction for future research. The ideas introduced in this article forms the foundations of what is now popularly referred to as Modern Portfolio Theory (MPT).
- Open Access
- This is an open access article distributed under the CC BY-NC license.
Cite this article
TY - CONF AU - Zehan Hou AU - Zeyu Li AU - Yang Zhou PY - 2017/04 DA - 2017/04 TI - Review on the Modern portfolio theory and optimization model BT - Proceedings of the 2017 International Conference on Innovations in Economic Management and Social Science (IEMSS 2017) PB - Atlantis Press SP - 695 EP - 702 SN - 2352-5428 UR - https://doi.org/10.2991/iemss-17.2017.139 DO - https://doi.org/10.2991/iemss-17.2017.139 ID - Hou2017/04 ER -