Q138
Markowitz's main contribution to portfolio theory is___________.
A.
that risk is the same for each type of financial asset
B.
that risk is a function of credit, liquidity and market factors
C.
risk is not quantifiable
D.
insight about the relative importance of variances and co variances in determining portfolio risk
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
Markowitz's main contribution to portfolio theory is insight about the relative importance of variances and co variances in determining portfolio risk.