Just curious about the timeline and evolution of asset/portfolio selection theory from past to present
In 1952, Markowitz published „Portfolio Selection“ introducing mean variance optimal portfolios („modern portfolio theory“) into finance and emphasising the effect of diversification. This work paved the way for Sharpe (1964) (and others) to develop the CAPM which marks the foundation of financial economics. Both obviously received the Nobel Prize. Beginning from there, asset pricing has developed many theories and models.
The Black Litterman (1992) model allows for incorporating your own views with regards to the expected returns of the assets. Another extension is the post modern portfolio theory from Rom and Ferguson (1994).