Q147
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
AnswerD.
smallest level of risk
Answer: Option C
Solution
Answer: Option C
Solution:
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.