The Markowitz Model Identifies the Efficient Set of Portfolios,which Offers

question 33

Multiple Choice

The Markowitz model identifies the efficient set of portfolios,which offers the

• A)highest return for any given level of risk or the lowest risk for any given level of return.
• B)least-risk portfolio for a conservative,middle-aged investor.
• C)long-run approach to wealth accumulation for a young investor.
• D)risk-free alternative for risk-averse investors.

---

Definitions:

Productive Efficiency

A scenario where goods or services are produced at the lowest possible cost and with maximum efficiency in resource usage.

Nonprice Competition

Strategies companies use to differentiate their product or service based on features, service, quality, or brand image rather than price.

Economic Profits

The net amount remaining when all costs, both obvious and not, are subtracted from the total income.

Differentiated Products

are goods or services that are distinguishable from each other on the basis of quality, features, or branding, leading to non-price competition among firms.