The Tools of PMPT
In 1987 The Pension Research Institute at San Francisco State University developed the practical mathematical algorithms of PMPT that are in use today. These methods provide a framework that recognizes investors' preferences for upside over downside volatility. At the same time, a more robust model for the pattern of investment returns, the three-parameter lognormal distribution, was introduced.
Read more about this topic: Post-modern Portfolio Theory
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