> For the complete documentation index, see [llms.txt](https://docs.dtf.fun/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.dtf.fun/explainer-modern-portfolio-theory-mpt/historical-background.md).

# Historical Background

Harry Markowitz introduced MPT in his seminal paper, "Portfolio Selection," published in the Journal of Finance. 

He argued that investors could achieve optimal portfolios by balancing risk and return, considering the correlation between asset performances. 

In 1990, Markowitz was awarded the Nobel Prize in Economic Sciences for his contributions.

Before MPT, investment strategies often focused on selecting individual securities. 

Markowitz's theory shifted the focus to portfolio-level optimization, emphasizing diversification to minimize risk.