# modern portfolio theory

## Definition

**also called**modern investment theory.

## Use this term in a sentence

“ You should try and learn about the modern portfolio theory and decide if that is a good way for you to proceed. ”

“ We dabbled in some modern portfolio theory and came up with a strategy that on paper looked to offer some blockbuster returns. ”

“ When he looked at the complex calculations involved in determining the strategy he wanted to use via the modern portfolio theory, he knew that he was not adept enough to precisely figure the risk he was taking compared to the anticipated gain. ”