Portfolio Theory,as Initially Developed by Markowitz (1952),assumes That the Returns

question 33

True/False

Portfolio theory,as initially developed by Markowitz (1952),assumes that the returns from investments are normally distributed.

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Definitions:

Behavioral decision theory

A theoretical approach that studies the psychological factors influencing individuals' decision-making processes.

Potential investment

Refers to the opportunity to allocate resources, typically financial, into projects, assets, or ventures, with the expectation of generating a beneficial return over time.

Decision-making

The cognitive process of selecting a course of action from among multiple alternatives, often considered a core function of management.

Intuition

Refers to the ability to understand something immediately, without the need for conscious reasoning.