Methodology

Modern Portfolio Theory

Why might the flaws of Modern Portfolio Theory impact investor psychology?

As the return of the portfolio may be different than expected.
As they may pick a portfolio that doesn't suit their risk tolerance.
As Modern Portfolio Theory does not predict the future.
As the investor may invest in something that they don't want to.

Why might the flaws of Modern Portfolio Theory impact investor psychology?

As the return of the portfolio may be different than expected.
As they may pick a portfolio that doesn't suit their risk tolerance.
As Modern Portfolio Theory does not predict the future.
As the investor may invest in something that they don't want to.

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