Modern Portfolio Theory - Deepstash
Modern Portfolio Theory

Modern Portfolio Theory

Diversification leads to good returns with lower risk. It works when you have assets that are not perfectly correlated. For example, foreign stocks are not perfectly correlated with domestic stocks, so adding them to your portfolio can lower risk while maintaining good returns. Assets have become increasingly correlated in recent years, but as long as they are not perfectly correlated, portfolio theory is still helpful.

177

1.19K reads

CURATED FROM

IDEAS CURATED BY

thomgutie

Academic librarian

A classic guide that blends history, economics, market theory, and behavioral finance to offer practical and actionable advice for investing and achieving financial freedom.

The idea is part of this collection:

Leading in Product Management

Learn more about books with this collection

How to align stakeholders

Best practices in product management leadership

How to create value together

Related collections

Read & Learn

20x Faster

without
deepstash

with
deepstash

with

deepstash

Personalized microlearning

100+ Learning Journeys

Access to 200,000+ ideas

Access to the mobile app

Unlimited idea saving

Unlimited history

Unlimited listening to ideas

Downloading & offline access

Supercharge your mind with one idea per day

Enter your email and spend 1 minute every day to learn something new.

Email

I agree to receive email updates