A Simplified Perspective of the Markowitz Portfolio Theory
A Simplified Perspective of the Markowitz Portfolio Theory ArXiv ID: ssrn-2147880 “View on arXiv” Authors: Unknown Abstract Noted economist, Harry Markowitz (“Markowitz) received a Nobel Prize for his pioneering theoretical contributions to financial economics and corporate finance. Keywords: Harry Markowitz, Modern Portfolio Theory, Asset Allocation, Risk-Return Trade-off, Equities Complexity vs Empirical Score Math Complexity: 3.0/10 Empirical Rigor: 2.0/10 Quadrant: Philosophers Why: The paper presents a simplified perspective of Markowitz’s theory and focuses on using Excel as a computational shortcut, indicating low mathematical density and minimal empirical backtesting or data-heavy implementation. flowchart TD A["Research Goal<br>Test Simplified MPT Approach"] --> B["Input Data<br>Historical Equity Returns"] B --> C["Computational Process<br>Mean-Variance Optimization"] C --> D["Core Calculation<br>Efficient Frontier Construction"] D --> E["Output<br>Risk-Return Efficient Portfolios"] E --> F["Key Finding<br>Validation of Risk-Return Trade-off"] F --> G["Outcome<br>Practical Asset Allocation Tool"]