Harry Markowitz and the foundations of modern finance

Andrew Lo on Harry Markowitz:

Harry Markowitz, co-recipient with Merton Miller and William Sharpe of the 1990 Nobel Prize for Economic Sciences ‘for their pioneering work in the theory of financial economics’, passed away in June 2023. As this column explains, his monumental contributions to modern finance have deeply influenced both academia and practice. His analysis of portfolio selection and risk management paved the way for a more sophisticated understanding of financial markets. And his theories continue to be integral to financial modelling and decision-making processes.