FIN-98-026


Modern Portfolio Theory, 1950 to Date

February 1998

Edwin J Elton, Martin J Gruber

ABSTRACT
Portfolio theory is a well-developed paradigm. There are excellent textbooks on the subject. Of course, we are especially partial to our own Modern Portfolio Theory and Investment Analysis. There are also good reviews in more advanced doctoral-level texts such as Ingersoll (1987) or Huang and Litzenberger (1988). Finally, good review articles such as Constantinedes and Malliaris (1995) exist. Therefore, instead of writing one more review article, we will be more selective and our discussion will be rather eclectic. This paper will present four topics we find of particular interest. Rather than attempting to survey all articles or all issues on each topic, we will discuss what we find of special interest and importance. We will attempt to convey wehere the field is today and where it is headed in the future.

Elton: (212) 998-0361 eelton@stern.nyu.edu
Gruber: (212) 998-0333 mgruber@stern.nyu.edu

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