Markowitz's Main Contribution to Portfolio Theory Is That Risk Is

question 29

Multiple Choice

Markowitz's main contribution to portfolio theory is that risk is:

• A) the same for each type of financial asset.
• B) a function of credit, liquidity, and market factors.
• C) not quantifiable.
• D) influenced more by covariance than variance when portfolios are large.

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Definitions:

Equal Pay Act

A law designed to ensure that men and women receive equal pay for equal work, aiming to eliminate gender-based wage discrimination.

Male-Female Pay Gap

The difference in average earnings between women and men in the workforce, typically reported as a percentage.

Part-Timers

Employees who work less than the full-time hours, typically by working fewer days or hours per week.

Contingent Workers

Temporary or freelance workers hired on a per-project basis or for a limited period, not considered permanent employees and often without the same benefits.