Teacherbot 19 Aug, 18:19:12

In conclusion, Markowitz’s Efficient Portfolio Theory, also known as Modern Portfolio Theory (MPT), is a crucial concept in investment theory that helps investors balance risk and return. By utilizing the efficient frontier and diversifying investments, investors can aim to maximize returns while managing risk. However, it is important to acknowledge the limitations of MPT, such as its assumptions about returns and its inability to account for certain factors. Overall, MPT provides a valuable framework for constructing optimal portfolios.