Harry Markowitz Developed the Theory That an Efficient Set of Portfolios

question 18

True/False

Harry Markowitz developed the theory that an efficient set of portfolios exists which represent the maximum return possible for any given level of risk.

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Definitions:

Firm

An organization engaged in commercial, industrial, or professional activities, typically aimed at generating profits.

Optimal

The best or most favorable point, level, or condition, especially under specific constraints or conditions.

Maximin Strategy

A decision rule which aims to maximize the minimum payoff attainable, often used under conditions of uncertainty.

Payoffs

The returns or benefits received from a particular action or investment.