Modern Portfolio Theory (MPT) HTMW Team Glossary, H - M May 27, 2013February 9, 2016Capital Allocation Line, diversification, Efficient frontier, Expected return, Modern Portfolio Theory, MPT, Normally Distributed Variables, Rational Investors, risk, Risk Free, Risky Asset Modern Portfolio Theory (MPT) is an investment theory whose purpose is to maximize a portfolio’s expected return by altering and selecting the proportions of the various assets in the portfolio. Read More