Modern Portfolio Theory

[Dark Hacker <hacker@xxxxxxxxxxxxxxx>]

I recently asked a fellow investor the following:

	"Is there some quantitative (not rule of thumb) formula I can use that,
	given a range of mutual funds with known properties (bonds, cash, growth,
	value, etc) will allow me to calculate the optimal balance given these
	properties and some expected behavior in the market (projected interest
	rates, overall price move, etc)???

	Note this is not an attempt to predict the market but rather optimize the
	return given some market expectation and level of risk.  This
	seems like a fairly straightforward problem and I'd be surprised
	aif such methods weren't already in use at all the major
	mutual fund houses."

Now it turns out that what I'm refering to here seems to be Modern
Portfolio Theory as espoused by Sharpe and Markowitz.  So can anyone
recommend any good books on Modern Portfolio Theory that will help me
balance my mix of funds and stocks?

- Hacker

Dark Hacker                   |  Hacker and Fortress web mechanic
The Guardians Of Computation  |  Fortress Of Computation
mail: hacker@xxxxxxxxxxxxxxx  |  web: http://www.computation.com/pub/hacker/
       "Building our future... one twisted freak at a time."
____________________________________________________________________