Examveda
Examveda

According to Markowitz, an efficient portfolio is one that has the_________________.

A. largest expected return for the smallest level of risk

B. largest expected return and zero risk

C. largest expected return for a given level of risk

D. smallest level of risk

Answer: Option C

Solution(By Examveda Team)

According to Markowitz, an efficient portfolio is one that has the largest expected return for a given level of risk. This theory was pioneered by Harry Markowitz in his paper "Portfolio Selection," published in 1952 by the Journal of Finance.

This Question Belongs to Commerce >> Financial Management

Join The Discussion

Related Questions on Financial Management

Investment is the _______________.

A. net additions made to the nation’s capital stocks

B. person’s commitment to buy a flat or house

C. employment of funds on assets to earn returns

D. employment of funds on goods and services that are used in production process