Risk-Return Analysis: The Theory and Practice of Rational Investing

Risk-Return Analysis opens the door to a groundbreaking four-book series giving readers a privileged look at the personal reflections and current strategies of a luminary in finance. This first volume is Markowitz's response to what he calls the "Great Confusion" that spread when investors lost faith in the diversification benefits of MPT during the financial crisis of 2008. It demonstrates why MPT never became ineffective during the crisis, and how you can continue to reap the rewards of managed diversification into the future. Economists and financial advisors will benefit from the potent balance of theory and hard data on mean-variance analysis aimed at improving decision-making skills. Written for the academic and the practitioner with some math skills (mostly high school algebra), this richly illustrated guide arms you with: Concrete steps to accurately select and apply the right risk measures in a given circumstance / Rare surveys of a half-century of literature covering the applicability of MPT / Empirical data showing mean and riskmeasure used to maximize return in the long term.