John Markowitz

John Markowitz is an influential economist and financial theorist known for developing the Modern Portfolio Theory (MPT) in the 1950s. His work revolutionized how investors build portfolios by emphasizing the importance of diversification to manage risk. Markowitz introduced the idea that by combining different assets, investors can optimize returns while minimizing potential losses. His research demonstrated that the overall risk of a portfolio depends not just on the individual assets, but also on how they interact with each other. This foundational concept has significantly shaped investment strategies and financial planning practices in the modern economy.