MLchartDataset catalogue

Modern Portfolio Theory

Term · Law · MLC-T-LAW-003274

An investment framework used to construct and manage a portfolio of assets to maximize expected return for a given level of risk. The theory posits that risk and return are not based on an asset's individual characteristics but on how it contributes to the portfolio as a whole. Under the Uniform Prudent Investor Act, trustees are evaluated on the performance of the entire trust portfolio, a standard that reflects the principles of this theory.

Table 1. Record
IdentifierMLC-T-LAW-003274
FieldLaw
Record as JSON 
{
  "id": "MLC-T-LAW-003274",
  "term": "Modern Portfolio Theory",
  "field": "Law",
  "definition": "An investment framework used to construct and manage a portfolio of assets to maximize expected return for a given level of risk. The theory posits that risk and return are not based on an asset's individual characteristics but on how it contributes to the portfolio as a whole. Under the Uniform Prudent Investor Act, trustees are evaluated on the performance of the entire trust portfolio, a standard that reflects the principles of this theory.",
  "url": "https://mlchart.com/terminology/law/modern-portfolio-theory/"
}

Record 3,245 of 5,439 in Law terminology (MLC-0107). Request the full dataset.