Post-modern portfolio theory uses downside risk to refine portfolio optimization. Learn how PMPT offers an alternative to modern portfolio theory for risk-adjusted returns.
Downside risk refers to the potential for an investment to decrease in value. Unlike general risk, which considers both ...
Downside risk plays a significant role in modern portfolio theory, influencing concepts like the Efficient Frontier, the Capital Asset Pricing Model (CAPM), and Beta. Behavioral finance also ...