Tag archives: Modern Portfolio Theory

Short Course On Investments Episode 15: What To Invest In

Last update on July 17, 2014.

In the Short Course On Investments, you will learn the basics of investing through simple everyday language. The course covers the same material as The Short Book On Investments.

In Episode 15, I talk about choosing which financial products to invest in, and in which tax vehicles to put them in.

 

 

Transcript:

Hello, my name is Jin Choi, and I’m the founder of MoneyGeek, and welcome to the 15th episode of the short course on investments.

Today, I want to talk about what to invest in, and where.

In previous episodes, I explained the various different types of ...

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Why Portfolio Optimization Is Useful

Last update on June 12, 2014.

 

 

Some time ago, the Canadian Couch Potato (CCP) came out with a critique against portfolio optimization. By "portfolio optimization", we're referring specifically to Modern Portfolio Theory (MPT), a theory that allows you allocate investments in a way that minimizes risk without sacrificing expected returns. For a simplified description of how Modern Portfolio Theory works, check out my previous article.

At MoneyGeek, I use a variant of this theory called "Post Modern Portfolio Theory" to construct MoneyGeek's portfolios. Bortolotti, the author of CCP, does not.

In his critique against portfolio optimization, Bortolotti called it a "useless exercise ...

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How Modern Portfolio Theory Works

Last update on Feb. 19, 2015.

Risky business: Modern Portfolio Theory aims to reduce risk in a portfolio without sacrificing returns

 

At MoneyGeek, we use a variation of Modern Portfolio Theory (MPT) extensively to construct our portfolios. In this article, I will explain what MPT does.

 

Optimizing A Portfolio Of Two Stocks

Let me explain MPT by way of a hypothetical example. Let's say we have two stocks from corporations ABC and XYZ. Both stocks trade at $10 per share in year 0.

At the end of year 1, ABC goes down by 20%, while XYZ goes up by 50%. In year 2 ...

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