Portfolio Theory Was Initially Developed By

question 21

Multiple Choice

Portfolio theory was initially developed by:

• A)Fama (1970).
• B)Markowitz (1952).
• C)Modigliani and Miller (1958).
• D)Sharpe (1950).

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Definitions:

Profit Margin

A financial performance metric that shows the percentage of revenue that exceeds the cost of goods sold, indicating the efficiency of a company in generating profits.

Operating Income

The profit realized from a business's core operations, calculated by subtracting operating expenses from gross profit.

Profit Margin

A financial metric indicating the percentage of revenue that remains as profit after deducting expenses.

Return On Investment

A financial metric used to evaluate the efficiency of an investment, calculated as the return from an investment relative to its cost.