How can AI help to solve the problems with MPT? – TrueRiskLabs – Medium

Modern portfolio theory (MPT) is a hypothesis about investment theory that Harry Markowitz published in 1952. Since that time, Markowitz's theory has been one of the most influential forces in finance for both academics and practitioners. Markowitz asserted that risk-averse investors could construct portfolios of assets that maximize return for a given level of risk. The application of MPT allows investors to create an optimal portfolio of assets for any particular level of risk. Depending on the individual's risk tolerance, they should invest in the return-maximizing set of assets.