The Measure of Risk Most Often Associated with the Markowitz

question 33

Multiple Choice

The measure of risk most often associated with the Markowitz portfolio model is the portfolio

• A)average return.
• B)minimum return.
• C)variance.
• D)standard deviation.

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Definitions:

Cost Method

An accounting method used for investments where the investment is recorded at its acquisition cost, without subsequent change for increases or decreases in market value.

Preferred Stock

A category of corporate ownership that has a priority over common stock in terms of asset and earnings claims, typically offering fixed dividend payments.

Common Stock

A type of equity security that represents ownership in a corporation, giving holders voting rights and a share in the company's profits via dividends.

Dividends

Distributions from a company to its shareholders, usually coming from the firm's earnings.