This stock market theory could also help coral reefs
In 1990, economist Harry Markowitz received the Nobel Prize for his work on developing the concept of âmodern portfolio theoryâ. Markowitz’s work in the field spanned decades, with his âPortfolio Selectionâ article first published in 1952. But it turns out that economic theory can do more than help investors do well on the stock market. .
An Investopedia article describes modern portfolio theory as “a method that can be used by low-risk investors to build diversified portfolios that maximize their returns without unacceptable levels of risk.” As Karen McVeigh reports at The Guardian, a group of researchers at the University of Queensland took this concept and applied it to coral reefs in an attempt to prevent them from dying in the face of the climate crisis.
Look at reef preservation as a form of investment and you will know where it is going. According to The Guardian, the researchers suggested that the optimal strategy for preserving coral reefs is to focus on the 50 most likely to survive climate change with a view to using these reefs to repopulate others if necessary.
Ove Hoegh-Guldberg, professor at the University of Queensland, described the project as “our best chance for a long-term future for coral reefs”. It’s an unlikely way to go about it, but climate change seems tailor-made for unconventional solutions and unexpected theories.
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