In a "Portfolio Selection" Application,the Objective Function Is Always to Minimize

question 44

True/False

In a "Portfolio Selection" application,the objective function is always to minimize risk,given a set of legal and policy constraints.

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Definitions:

Straight-line Method

A method of allocating a fixed asset's cost evenly over its useful life for the purpose of depreciation.

Par Value

The face value of a bond or stock as stated by the issuing company, which may not reflect its market value.

Semiannual

Occurring twice a year; a term often used in the context of interest payments, dividends, or certain financial reporting periods.

Interest Expense

The cost incurred by an entity for borrowed funds, frequently appearing as a line item on the income statement.