Please note that the content of this book primarily consists of articles available from Wikipedia or other free sources online. Pages: 71. Chapters: Adaptive market hypothesis, Alpha (investment), Alternative beta, Annuity (finance theory), Arbitrage pricing theory, Arrow-Debreu model, Behavioral assumption, Binomial options pricing model, Black's approximation, Black model, Black-Scholes, Brownian model of financial markets, CAN SLIM, Capital asset pricing model, Chen model, Chepakovich valuation model, Constant elasticity of variance model, Cox-Ingersoll-Ross model, Cumulative prospect theory, Decoy effect, Dividend discount model, Earnings response coefficient, Efficient frontier, Equity premium puzzle, Fama-French three-factor model, Fama-MacBeth regression, Forward measure, Guidotti-Greenspan rule, Ho-Lee model, Hull-White model, Intertemporal CAPM, Korn-Kreer-Lenssen model, LIBOR market model, Low-volatility anomaly, Magic formula investing, Market exposure, Martingale pricing, Modern portfolio theory, Modified Dietz method, Numeraire, Post-modern portfolio theory, Put-call parity, Random walk hypothesis, Rational pricing, Rendleman-Bartter model, SABR volatility model, Simple Dietz method, Single-index model, Stochastic investment model, Strategic sustainable investing, T-Model, The Dogs of the Dow, Trinomial tree, True time-weighted rate of return, Undervalued stock, Value investing, Vasicek model. Excerpt: Modern portfolio theory (MPT) is a theory of finance that attempts to maximize portfolio expected return for a given amount of portfolio risk, or equivalently minimize risk for a given level of expected return, by carefully choosing the proportions of various assets. Although MPT is widely used in practice in the financial industry and several of its creators won a Nobel memorial prize for the theory, in recent years the basic assumptions of MPT have been widely challenged by fields such as behavioral economics. MPT is a...