This paper serves as an introduction to Portfolio Selection and Risk Management theories founded upon Harry M. Markowitz’s Nobel prize winning Modern Portfolio Theory. Simplified portfolio selection algorithms including the Single Index and Constant Correlation Models, along with widely-used risk management tool Value-at-Risk calculation methods are described in detail in the introduction sections of this paper. In the concept demonstration sections, the above theories are applied and evaluated using historical data of the Dow Jones Industrial Average stocks. A specially designed application in statistical software R is included in the application section of this paper to enable beginning investors and statistical finance students to put these ideas in action using their investment data of choice.