Portfolio Theory as Described by Markowitz Is Most Concerned with

question 55

Multiple Choice

Portfolio theory as described by Markowitz is most concerned with

• A) the elimination of systematic risk.
• B) the effect of diversification on portfolio risk.
• C) the identification of unsystematic risk.
• D) active portfolio management to enhance returns.

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Definitions:

Emotion

The “feeling” aspect of consciousness, characterized by a certain physical arousal, a certain behavior that reveals the emotion to the outside world, and an inner awareness of feelings.

Mania

A mental state characterized by extremely elevated mood, energy, and unusual thought patterns, often seen in bipolar disorder.

Cocaine

A natural drug derived from the leaves of the coca plant.

Amphetamines

Stimulants that are synthesized (made) in laboratories rather than being found in nature.