Abstract
The stated scope of Markowitz’s 19521 article is quite clear. He argues that a diversified portfolio must always be preferable to an undiversified one. This is based on the assumption that ‘variance of return is an undesirable thing’, and a mathematical proof that variance of return may be reduced within an equity portfolio by holding a number of different shares.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
Notes
Guy Fraser-Sampson Multi Asset Class Investing, John Wiley & Sons, Chichester 2006.
Guy Fraser-Sampson Multi Asset Class Investment Strategy, John Wiley & Sons, Chichester 2006.
C.D. Ellis Investment Manager’s Handbook, Dow Jones – Irwin, Chicago 1980.
Ludwig Wittgenstein Tractatus Logico-Philosophicus, Routledge, London 2001.
Guy Fraser-Sampson Alternative Assets: Investments for a post-crisis world, John Wiley & Sons, Chichester 2011.
Peter L. Bernstein Against the Gods: The remarkable story of risk, John Wiley & Sons, New York 1996.
Peter L. Bernstein Against the Gods: The remarkable story of risk, John Wiley & Sons, New York 1996, page 217.
Frank Ramsey ‘Truth and Probability’ in The Foundations of Mathematics and other Logical Essays, Harcourt Brace, New York 1931.
Harry Markowitz (1952) ‘Portfolio Selection’, Journal of Finance 7(1), page 252.
Frank Ramsey ‘Truth and Probability’ in The Foundations of Mathematics and Other Logical Essays, Harcourt Brace, New York 1931.
Harry Markowitz Portfolio Selection: Efficient diversification of investments, John Wiley & Sons, New York 1959.
Anatol Rapoport Operational Philosophy, Harper, New York 1953.
Percy Bridgman The Logic of Modern Physics, Macmillan, New York 1927.
Quoted in Philip Frank The Validation of Scientific Theories, Beacon Press, Boston 1956 and noted in SEP.
Philip Frank The Validation of Scientific Theories, Beacon Press, Boston 1956.
Author information
Authors and Affiliations
Copyright information
© 2014 Guy Fraser-Sampson
About this chapter
Cite this chapter
Fraser-Sampson, G. (2014). Thougts on risk (post-War): theory becomes dogma. In: The Pillars of Finance. Palgrave Macmillan, London. https://doi.org/10.1057/9781137264060_9
Download citation
DOI: https://doi.org/10.1057/9781137264060_9
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-44286-7
Online ISBN: 978-1-137-26406-0
eBook Packages: Palgrave Economics & Finance CollectionEconomics and Finance (R0)