Quite a heated debate has been raging in Finance Theory since the early 1990's regarding the relevance of Modern Portfolio Theory. Yet both adversaries are overlooking something very fundamental that could in fact bring them much closer. My working paper on the Market Indifference Curve provides...

A core premise of Modern Portfolio Theory is that investors utilize two parameters for their decision making process only: expected value and standard deviation. Ergo - if only to determine the fair expected return for the Market Portfolio itself - a fair price of total risk exists. Assuming...