Modern Portfolio Theory

The idea behind mor modern portfolio theory most simply is charting the expected or highest return with the lowest amount of risk. But likei in the early years, no clients want that dot on the line. When you invest in stocks, be prepared that stocks can lose 60%. How would that impact my life? Stout. If i'm 60 heading into retirement, i might not be able to retire. And that's why it's important to understand the risk.