Harry Markowitz (1927 – 2023) is one of the most influential figures around Financial
Economics and made his most significant contribution in the area of Portfolio Theory.
He was born in Chicago, where he later achieved his PhD at University of Chicago in
1955.
Harry Markowitz had an academic career and taught at various prestigious universities
such as Wharton School of University of Pennsylvania.
One of the greatest contributions of Markowitz to economics is in his work regarding
the portfolio theory which was instrumental in changing the way investors look at
diversification and risk.
In his contribution to finance in 1952, Markowitz was able to propose that it is indeed
possible to maximize returns of portfolios and diversify to mitigate risks by adding
different assets together that have varying risks and correlations.
In 1990, Markowitz was jointly awarded the Nobel Prize in Economic Sciences along
with Merton Miller and William F. Sharpe, “for their pioneering work in the theory of
financial economics” (Nobel Prize, 1990).
Harry Markowitz changed the way people invest their money and he played a crucial
role in the development of modern financial economics through his portfolio theory,
which continues to guide practitioners in the field of investments and helps to promote
a sophisticated understanding of risk and return management.
References
https://www.investopedia.com/terms/h/harrymarkowitz.asp
https://www.nobelprize.org/prizes/economic-sciences/1990/press-release/