Customer Quote by Harry Markowitz
“We next consider the rule that the investor does or should consider expected return a desirable thing and variance of return an undesirable thing.”
About This Quote
Source Book: Portfolio Selection, 1952
Investors should view expected return as desirable and variance as undesirable, establishing the risk‑return trade‑off foundation.
In simple terms: Return is good; variance is bad.
Balance risk and reward in investing.
Themes
Mood
Type
When to use this quote
- financial planning
- risk assessment
- asset allocation
Key Concepts
Questions to Reflect On
- How does diversification affect variance?
- When is higher variance acceptable?
Variance can be useful for diversification, not just a negative.