Extensions
Since MPT's introduction in 1952, many attempts have been made to improve the model, especially by using more realistic assumptions.
Post-modern portfolio theory extends MPT by adopting non-normally distributed, asymmetric measures of risk. This helps with some of these problems, but not others.
Black-Litterman model optimization is an extension of unconstrained Markowitz optimization which incorporates relative and absolute `views' on inputs of risk and returns.
Read more about this topic: Modern Portfolio Theory
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