Proceedings of the 2017 International Conference on Innovations in Economic Management and Social Science (IEMSS 2017)

Review on the Modern portfolio theory and optimization model

Authors
Zehan Hou, Zeyu Li, Yang Zhou
Corresponding Author
Zehan Hou
Available Online April 2017.
DOI
https://doi.org/10.2991/iemss-17.2017.139How to use a DOI?
Keywords
Modern Portfolio Theory (MPT), Indexed, Improved, Essential and Dynamic.
Abstract
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.

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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  -