
Efficient Market Hypothesis: So Are Markets Efficient?
May 19th, 2010 admin

Modern Portfolio Theory (MPT), which is widely used by the financial industry, can serve investors very well. But, as many investors know, MPT has been criticized more vigorously in recent years. MPT is the model for proper asset allocation and portfolio diversification . By constructing a portfolio of assets that have a low or even negative correlation, an investor can, in theory, reduce overall portfolio risk and maximize returns. Opponents of MPT cite a few critical errors with this thinking. The technical criticisms include arguments…
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