Modern Portfolio Theory Developed by William F

question 30

Multiple Choice

Modern portfolio theory developed by William F.Sharpe is the foundation of ________.

• A) currency market parity models
• B) the balance sheet hedge
• C) the capital asset pricing model
• D) adjusted net present value model

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Definitions:

2-Methylhexan-2-ol

A secondary alcohol that is derived from hexane by substituting a methyl group and a hydroxyl group at the second carbon.

Synthesize

To chemically produce a compound, typically by combining or compiling different elements or substances through various reactions.

Probability

The chance of an event taking place, shown as a numeric figure lying between 0 and 1.

Standard Normal Distribution

A probability distribution that has a mean of zero and a standard deviation of one, used as a basis in inferential statistics.