Harry Markowitz

RIAs are giving a face-lift to the traditional balanced portfolio to maintain its relevance for today’s financial market conditions.

The quest by behavioral finance theorists for better explanations of market and investor anomalies challenge traditional economic paradigms like Modern Portfolio Theory, the Capital Asset Pricing Model and the Efficient Market Hypothesis.

This timeline shows the evolution of the Portfolio Theory.

The popularity of Modern Portfolio Theory hasn’t stopped practitioners from trying to improve upon it.