Category Archives: Risk And Diversification
A theory on how risk-averse investors can construct portfolios to optimize or maximize expected [total] return based on a given level of market risk, emphasizing that risk is an inherent part of higher reward.
I’ve been thinking that it’s time we developed a parallel Modern Income Theory. Part of that would be a Modern Dividend Theory (MDT). I am going to restrict myself to the latter, because it is my area of expertise.
Before I discuss risk and diversification, I want to come closer to constructing a brief definition of MDT.