24 August: Remembering Harry Markowitz on Birthday

Harry Markowitz (24 August 1927 – 22 June 2023) was an American economist. Harry Markowitz was awarded the Nobel Prize in Economic Sciences in 1990.

Life and Career

Harry Markowitz was born on 24 August 1927, in Chicago, Illinois, United States.

Markowitz completed his bachelor’s degree in economics from the University of Chicago in 1947. He then pursued further studies at the University of Chicago, earning his master’s degree in economics in 1950 and a doctorate in economics in 1954.

Markowitz’s most notable contribution is his development of the Modern Portfolio Theory (MPT), which he introduced in his 1952 paper titled “Portfolio Selection.” MPT emphasizes the importance of diversification in investment portfolios to manage risk. Markowitz demonstrated that by combining assets with different levels of risk, investors could achieve higher returns for a given level of risk or lower risk for a given level of return.

His work laid the foundation for understanding the trade-off between risk and reward in investing, and it transformed the way professionals manage investment portfolios. MPT is now a cornerstone of finance and investment education worldwide.

Harry Markowitz continued to be active in the field of economics and finance throughout his life. He served as a professor at institutions like the University of California, San Diego, and Baruch College.

Harry Markowitz passed away on 22 June 2023, in San Diego, California, United States.

Award and Legacy

Harry Markowitz was awarded the Nobel Prize in Economic Sciences in 1990.

His work has left an enduring legacy, shaping the way modern finance professionals approach investment management. His ideas have led to the development of various portfolio management strategies and have greatly influenced the field of financial economics.