Firstly the article introduces the basic theory and method of financial engineering briefly to create a set of general rules on financial product analysis and investment portfolio.

报告首先简要介绍金融工程的基本原理与方法，形成金融工程实施过程中采用的金融产品分析和金融产品组合的一般性规则。

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With the theory of stochastic differential equation, the authors discuss a problem of a class of risk investment portfolio with stochastic character.

利用随机微分方程理论，对一类具有随机特征的风险投资组合问题进行深入研究。

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Now, underlying our theory is the idea that we measure the outcome of your investment in your portfolio by the mean of the return on the portfolio and the variance of the return on the portfolio.

而理论的基础是,我们通过计算,组合收益率的均值，和组合收益率的方差,来衡量一个投资组合的优劣。

耶鲁公开课 - 金融市场课程节选

In other words, Modern Portfolio Theory as an investment strategy is fundamentally incomplete.

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In the early 1950s, another doctoral student named Harry Markowitz posited a statistical approach to investment selection called Modern Portfolio Theory.

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Translated into investment theory, this means investors should aim to hold a portfolio of assets whose returns are not highly correlated.

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