Portfolio Simulation Project $1\mathrm{.}0$ Introduction In an ideal situation, an investor would like to investment in an asset or portfolio of asset characterized by high returns and low risk. However, the ideal world does not exist and so is the ideal portfolio as opined in the sentence above. This understanding gave birth to several portfolio theories and among these theories is the modern portfolio theory whose key contributors included Harry Markowitz and William Sharpe. In the modern portfolio theory of MPT as it is famously referred to$,$ the theorists emphasize the importance of diversification in the portfolio. The sole objective of portfolio diversification remains to be the diversification of risk. In essence, this theory bears the perspective that it is never enough to look at the expected risk and return of a single investment asset. Rather, investing in more than one asset allows the investor to reap the benefits of portfolio diversification.