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Please give a brief definition and implication of portfolio theory, and then argue both sides of portfolio theory, both limits and benefits.

Question: Critically assess the implications of the Portfolio Theory, discuss the benefits and limitations, citing the key scholars in the area.

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The expert provides a brief definition and implication of portfolio theory.

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In his 1952 paper "Portfolio Selection", Markowitz introduces the reader to what is widely known as modern portfolio theory. At the heart of his argument is the premise that it is optimal for the investor to require "minimum variance for given expected returns or more and maximum expected return for given variance or less" (Markowitz, 82). While Markowitz does identify ...

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