Post-modern portfolio theory supports diversification in an investment portfolio to measure investment's performance

Article English OPEN
Rasiah, Devinaga (2012)
  • Publisher: International Scientific Press
  • Subject: expected return | portfolio | Post Modern Portfolio Theory | risk returns
    • ddc: ddc:330

This study looks at the Post-Modern Portfolio Theory that maintains greater diversification in an investment portfolio by using the alpha and the beta coefficient to measure investment performance. Post-Modern Portfolio Theory appreciates that investment risk should be tied to each investor's goals and the outcome of this goal did not symbolize economic of the financial risk. Post-Modern Portfolio Theory's downside measure generated a noticeable distinction between downside and upside volatility. Brian M. Rom & Kathleen W. Ferguson, 1994, indicated that in post-Modern Portfolio Theory, only volatility below the investor's target return incurred risk, all returns above this target produced ambiguity which was nothing more than riskless chance for unexpected returns.
Share - Bookmark

  • Download from
    EconStor via EconStor (Article, 2012)
  • Cite this publication