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Since in portfolio theory all investors balance expected return versus
expected risk, shouldn't we at least know how that works?

Intermediate

Mean Variance Optimization is the framework for maximizing the reward-to-risk ratio of a portfolo. Mean in the numerator refers to the mean expected return and variance in the denominator refers to a measure of expected variability. MVO is a key takeaway from Modern Portfolio Theory as it is assumed that all investors maximize returns relative to risk. A software program called an optimizer generates weights to securities while maximizing the reward-to-risk ratio.

Synonyms: Mean-Variance, MVO, Mean/Variance Optimization

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True

**Doc: ***One MPT assumption is that all investors
are *
MVO * aware.*

**Doc: ***In theory, right? My stockbroker says
that almost no one follows MPT.*

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Mean Variance Optimization

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