According to Markowitz and Other Proponents of Modern Portfolio Theory

question 46

Multiple Choice

According to Markowitz and other proponents of modern portfolio theory which of the following activities would not be expected to produce any benefits?

• A) Diversification
• B) Investing in Treasury bills
• C) Investing in stocks of utility companies
• D) Engaging in active portfolio management to enhance returns

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Definitions:

Beliefs

Convictions or acceptances that something exists or is true, especially without proof.

Behavioral Measures

Metrics or methods used in research and psychology to quantitatively assess people's actions, reactions, and behaviors in various contexts.

Controlled Situation

An environment or setting in which variables are manipulated or managed to influence the outcome of an experiment or testing.

Personality

The combination of emotional, attitudinal, and behavioral response patterns of an individual, distinguishing one person from another.