Markowitz, Harry

Harry Markowitz was an influential economist known for developing Modern Portfolio Theory. He provided a mathematical framework for investors to build portfolios that balance risk and return effectively. By diversifying investments across different assets with varying correlations, investors can reduce overall risk without sacrificing potential gains. His work introduced the concept of the "efficient frontier," a set of optimal portfolios offering the highest expected return for a given level of risk. Markowitz's ideas help investors make informed decisions about how to allocate their assets to manage uncertainty, making investment strategies more scientific and disciplined.