Simple Heresy | Science News

Be a Champion for Science

Get your subscription to

Science News when you join.


Simple Heresy

Rules of thumb challenge complex financial analyses 

1:23pm, May 20, 2011

Harry Markowitz won a 1990 Nobel Prize in economics for efficiently passing the buck — make that bucks. He was honored for developing a mathematical formula that helps investors maximize profit and minimize loss in their portfolios. After an exhaustive analysis of financial information, Markowitz’s procedure allocates a person’s stash of cash to an array of assets, with more money going to better bets.

This article is available only to subscribing members. Join the Society today or Log in.

Get Science News headlines by e-mail.

More from Science News