Understanding Efficient Frontier
The Nobel Prize Winner Theory To Gain Higher Returns In Your Investment
Question: What Is A Good Portfolio?
A good portfolio is more than a long list of good stocks and bonds. It is a balanced whole, providing the investor with protections and opportunities with respect to a wide range of contingencies. — Harry Markowitz
The Modern Portfolio Theory of Nobel prize winner, Harry Markowitz can be implemented by using optimisation routines.
“The theory provides a firm foundation for the intuition that you should not put all your eggs in one basket and shows investors how to combine securities to minimize risk” (Burton G. Malkiel).
Article Aim
This article will document the following three key points:
- Understanding Of Efficient Frontier
- A quick overview of SciPy package
- How efficient portfolios can be generated in Python?
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