MPT

(redirected from Modern portfolio theory)
Also found in: Medical, Financial, Wikipedia.
AcronymDefinition
MPTMaryland Public Television
MPTModern Portfolio Theory (investing)
MPTMaison pour Tous (French: Home for All; est. 1971)
MPTMaster of Physical Therapy (also seen as MSPT)
MPTMaintenance and Protection of Traffic (construction industry)
MPTMaputo (Mozambique capital)
MPTMultistate Performance Test (National Conference of Bar Examiners)
MPTMitochondrial Permeability Transition
MPTMessage-Passing Toolkit
MPTMulti Port Transceiver
MPTMemory Pipeline Technology
MPTMulti Protocol Trunking
MPTMessage Passing Toolkit
MPTMulti Page Tiff
MPTMobile Phone Tools
MPTMemory Protocol Translator
MPTMulti Plate Clutch Transfer
MPTMinistry of Posts and Telecommunications
MPTMultipoint-to-Point (algorithm)
MPTModplug Tracker (music software)
MPTManhattan Piano Trio (chamber music; Manhattan, NY)
MPTMetro Parks Tacoma (Tacoma, WA)
MPTMale Pipe Thread
MPTMemory Pipeline Technology (Intel)
MPTMath Placement Test
MPTMutual Protection Trust (insurance; Cooperative of American Physicians)
MPTManpower, Personnel & Training
MPTMichigan Peace Team
MPTMcKesson Provider Technologies (San Francisco, CA)
MPTMinistry of Post and Telematics
MPTMusic Production and Technology (University of Hartford; Connecticut)
MPTMusic Production and Technology (various schools)
MPTMagnetic Particle Testing
MPTMechanical Pan Tilt ( Cambo)
MPTMario Power Tennis (gaming)
MPTMormon Pioneer Trail (Church of Jesus Christ of Latter-Day Saints; various locations)
MPTMicrowave Power Transmission
MPTMicrosoft Project Template
MPTMatching Person and Technology
MPTMain Propulsion Test (US NASA)
MPTMonkey Power Trio (band)
MPTMinistry of Posts & Telecommunications (Japan)
MPTMission Planning Team (US NASA)
MPTMovimento Partido da Terra
MPTMean Repair Time
MPTMajor Projects Team (various locations)
MPTMarket Post Tower (San Jose, CA)
MPTMulti-Purpose Tool (oil drilling)
MPTMobile Palliative Team (Austria)
MPTMachine Perception Toolbox
MPTMarine Portable Tank (shipping)
MPTMoyenne Pondérée Dans Le Temps (French)
MPTMunich Personality Test
MPTMud Pulse Telemetry (drilling engineering)
MPTMission Planning Terminal
MPTMyPicTales (website)
MPTMain Power Transformer
MPTMedical Proficiency Training
MPTMultiple Pure Tone (noise)
MPTMaster Piano Technician
MPTMurugappa Polytechnic (Chennai, India)
MPTMass Production Type (Gundam animated series)
MPTMinimum Pressurization-Temperature
MPTMissile Procedure Trainer
MPTMulti-Purpose Testware (MTS Systems Corporation)
MPTMouse Proximal Tubule Cells (tissue culture)
MPTMultilateral Preparatory Talks (Conference on Security and Co-operation)
MPTMost Probable Trajectory
MPTMulti-Protocol Translator (ATM networks)
MPTMilitary Potential Test
MPTMicrowave Product Team
MPTMendeleev's Periodic Table
MPTMobile Portable Terminal
MPTMaxillofacial Prosthetic Technician
MPTMultimedia Phone Tool
MPTModified Policy Text (insurance)
MPTMetal Pre-Treatment
MPTMenominee Public Transit (Wisconsin)
MPTMultipurpose Prevention Technologies (reproductive health)
References in periodicals archive ?
The paradigm has been replaced by only four decades later with the modern portfolio theory that focused on the idea that there are many emotional investors but also enough rational investors able to arbitrate far from pricing mistakes according to the principle that stock prices are including all the existing information.
The modern portfolio theory was introduced by Markowitz (1952) who suggested that there are two approaches in investment portfolios, namely the classical and modern portfolio approach.
Harry Markowitz, the father of modern portfolio theory, said people tend to hold not just one but a portfolio of investments.
Modern portfolio theory posits that investment strategy must be conducted in a risk diversification perspective, what leads to an analysis of the combination of assets considering the return and the risk, and also the covariance of the returns between the assets.
In contrast to Modern Portfolio Theory (Fabozzi, Gupta, and Markowitz, 2002; Markowitz, 1952; Markowitz, 2014) and Efficient Market Hypothesis (Fama, 1995; Fama, 1965; Fama, 1970) the experts of behavioural finance contend that people make irrational financial decisions (Kahneman and Tversky, 1979; Tversky, and Kahneman, 1992; Kahneman, Knetsch, and Thaler 1991).
Markowitz in which he described his "modern portfolio theory." He emphasized the importance of risk and diversification in investment portfolios, and while his article addressed portfolios of corporate equities, the investment theory was later adopted for use with real estate.
Since the development of modern portfolio theory, asset and risk diversification has been the primary way for investors to improve risk-adjusted return, but pure volatility control requires an investor to buy put options as part of a downside risk-mitigation strategy.
PIVOT's algorithms are transparent and based on Nobel-winning Modern Portfolio Theory (MPT) to offer good long term risk-adjusted returns via globally diversified portfolios 24x7, with low fees and low entry investments.
However, this is where we clearly hit a limit of usefulness for measures based on Modern Portfolio Theory, because BTC returns are very abnormal, while Sharpe ratio assumes an approximate normal distribution of returns and thus might significantly understate the risk of losses in BTC.
Modern portfolio theory tells you that when you form a portfolio of uncorrelated strategies, mathematically, the whole will be more valuable than the individuals."
Modern portfolio theory divides risk into the categories of "compensated" and "uncompensated" risk.
Co Harry Markowitz's groundbreaking Modern Portfolio Theory forms the basis of most investment portfolios, from traditional financial planners to robo-advisors.