Uniform Acts, Modern Portfolio Theory, and An Unintended Consequence
by James F. McDonough, Jr. on August 8, 2013
Trustees had been governed by the Reasonable Man standard for investing trust assets that were designed to preserve principal and avoid risk. Then, Modern Portfolio Theory came into prominence and the Reasonable Man rule fell into disfavor. Modern Portfolio Theory (MPT), supported by the work of Nobel Laureates, became the prevailing theory. In the most simple of terms, MPT requires diversification by allocating capital among asset classes or sectors so as to minimize risk.
Firefox recommends the PDF Plugin for Mac OS X for viewing PDF documents in your browser.
We can also show you Legal Updates using the Google Viewer; however, you will need to be logged into Google Docs to view them.
Please choose one of the above to proceed!
LOADING PDF: If there are any problems, click here to download the file.