Risk, Uncertainty, Profits, and Modern Portfolio Theory

Tags: Prices, The Entrepreneur, Financial Markets

12/15/2025 Frank Shostak

While Modern Portfolio Theory (MPT) is popular in academic economics and finance, it fails to properly explain profits, mistakenly confusing entrepreneurial profit seeking with risk management.

Original article: https://mises.org/mises-wire/risk-uncertainty-profits-and-modern-portfolio-theory

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