received the Nobel Prize in Economic Sciences for his work on investment risk and return, and is recognized as the father of modern portfolio theory.
won a 1990 Nobel Prize in economics for efficiently passing the buck--make that bucks.
A half a century ago, economist Harry Markowitz
came up with something called modern portfolio theory, which said it was possible to model and compare investments and find the optimum mix of assets at a prescribed level of risk.
In an article entitled 'De Finettit Scoops Markowitz', Nobel laureate Harry Markowitz
(2006) acknowledges de Finetti's priority in using mean variance analysis and credits de Finetti with solving a special case of the global optimality conditions in quadratic programming.
It originated in the 1950s in a series of papers by Harry Markowitz
of the University of Chicago.
(2009) Harry Markowitz
: Selected Works, World Scientific Publishing Co.
Picerno (editor, The Beta Investment Report) asks whether we have learned anything since the introduction of modern portfolio theory (MPT) in a 1952 journal article by Harry Markowitz
. His response is "no" and "yes." While financial economists are still a long way from solving the investment risk-management challenge and the perfect asset allocation rebalancing strategy is a myth, he offers investors in today's economy advice based on the latest developments in MPT.
Thus, Robert Merton, William Sharpe, and Harry Markowitz
, all major figures in the first volume, reappear in the sequel.
Though they admit that this may be true in a traditional portfolio, they explained that in 1952 Harry Markowitz
developed the theory of portfolio choice which proved that adding non-correlated assets which move independently from each other to a portfolio increases profit potential and reduces risk.
And if you can quantify this adage to prove that 90% of investment success is down to sound basket management of eggs, as Harry Markowitz
did, you can win a Nobel Prize in Economics (See Putting A Portfolio Together, J@pan Inc Issue 70).