Modern Portfolio Theory is a calculated and disciplined approach to investing in a portfolio of assets. It is an approach that looks at expected returns, risk (standard deviation and variance), correlations and other statistical measures of asset classes. In 1990, Harry Markowitz was awarded the Nobel Prize in economics for this pioneering work. Here are some of the basic tenets of Modern Portfolio Theory:
*Please Note: Different types of investments involve varying degrees of risk. Therefore, it should not be assumed that future performance of any specific investment or investment strategy (including the investments and/or investment strategies recommended and/or undertaken by Ironwood), will be profitable, or equal any historical performance level(s).