A portfolio, in simple words, is a combination of assets. Portfolio theory shows how an investor can achieve his optimal portfolio position. The theory is based on its fundamental postulate that the value of the investor is a function of two factors; mean return and variance (or its square root; the variance) of return. For this reason, it is also described as the mean-variance portfolio theory, or two-parameter portfolio theory. The investor is believed to choose a higher mean return to a lower one, and select a lower variance of return to a higher one.The predictable return on a portfolio is

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So the Fed cut rates again this morning in the hope of saving the US economy from drowning. After a few years of working in banks and brokerage houses I wonder just who the interest rate cut actually helps - it certainly does not seem to help the average American.If you are taking out a loan, or buying a home then yes the rate cut helps you. But how about the people, especially the elderly that rely on their ever diminishing returns on their savings accounts and CD's. Now combine these lower returns with a weak dollar and rising food costs due to inflation and oil prices - remind me how