Portfolio Construction and Market Portfolio Theory

08/19/2011 by

 

Modern portfolio theory was brought to us by Henry Markowitz winner of the Nobel Prize in Economic, 1990 along with Merton Miller and Williams Sharp. Modern portfolio theory is the basis of sound academic investing today. The concept of  dissimilar price movement to manage volitity was first communicated mathematically by Harry Markowitz back in the 1950s. He has been recognized for developing the math formulas that are use today to measure volatility against expected return. Modern portfolio theory is cornerstone for sound prudent investing today.

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About Paul Nichols

Paul is the founder of Financial Abundance, a Registered Investor Advisory firm and EDI, an Estate Planning Firm with offices in State College and Lewisburg. He has been working with individuals, families and businesses for over twenty years, including many Fortune 500 companies. He has educated tens of thousands of people through seminars, workshops and various international speaking engagements where he shared the stage with many notable individuals such as Ronald Reagan, Robert Kiyosaki (author of Rich Dad, Poor Dad), Mike Ditka, General Schwarzkopf, and Newt Gingrich to name a few.

In 2000, after many years of traveling to consult companies and individuals, Paul decided to relocate from Colorado to State College, PA (his wife’s hometown) to develop a local advisory firm.

Paul operates under the core belief that education plus understanding leads to clarity and confidence; resulting in peace of mind. He is a proud father of three and devoted husband of 20 plus years.

Some of Paul’s accomplishments:
Regular contributor to the Centre Daily Times, via the “It’s Your Money” blog
Featured in the movie Navigating the Fog of Investing
Regular contributor to Town & Gown as the publications Investor Coach
Host of the weekly iTunes Podcast, It’s Your Money
Member of the Western PA Better Business Bureau
Member of the Centre County Chamber of Business and Industry