in Liberal Arts,[3] Markowitz decided to continue his studies at the University of Chicago, choosing to specialize in economics.
There he had the opportunity to study under important economists, including Milton Friedman, Tjalling Koopmans, Jacob Marschak and Leonard Savage.
While researching the then current understanding of stock prices, which at the time consisted in the present value model of John Burr Williams, Markowitz realized that the theory lacks an analysis of the impact of risk.
This insight led to the development of his seminal theory of portfolio allocation under uncertainty, published in 1952 by the Journal of Finance.
[5] During 1955–1956 Markowitz spent a year at the Cowles Foundation,[2] which had moved to Yale University, at the invitation of James Tobin.
[6] Markowitz won the Nobel Memorial Prize in Economic Sciences in 1990 while a professor of finance at Baruch College of the City University of New York.
[7] The company that would become CACI International was founded by Herb Karr and Harry Markowitz on July 17, 1962, as California Analysis Center, Inc.
Working with Paul Samuelson and Robert Merton he created a hedge fund that represents one of the first known attempts at computerized arbitrage trading.
He was actively involved in designing the next step in the retirement process: assisting retirees with wealth distribution through GuidedSpending.
The Markowitz Efficient Frontier is the set of all portfolios that will give the highest expected return for each given level of risk.