The Markowitz model identifies the efficient set of portfolios, which offers the ____________.
A. highest return for any given level of risk or the lowest risk for any given level of return
B. least-risk portfolio for a conservative, middle-aged investor
C. long-run approach to wealth accumulation for a young investor
D. risk-free alternative for risk-averse investors
Answer: Option A
Solution(By Examveda Team)
The Markowitz model identifies the efficient set of portfolios, which offers the highest return for any given level of risk or the lowest risk for any given level of return. Harry Markowitz model (HM model), also known as Mean-Variance Model because it is based on the expected returns (mean) and the standard deviation (variance) of different portfolios, helps to make the most efficient selection by analyzing various portfolios of the given assets.This Question Belongs to Commerce >> 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
Financial Management is mainly concerned with ______________.
A. All aspects of acquiring and utilizing financial resources for firms activities
B. Arrangement of funds
C. Efficient Management of every business
D. Profit maximization
The primary goal of the financial management is ____________.
A. to maximize the return
B. to minimize the risk
C. to maximize the wealth of owners
D. to maximize profit
In his traditional role the finance manager is responsible for ___________.
A. proper utilisation of funds
B. arrangement of financial resources
C. acquiring capital assets of the organization
D. efficient management of capital
Join The Discussion