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:

Bond Premium

The surplus value of a bond beyond its principal amount when sold in the market.

Term Bond

Bonds that have a specified maturity date on which the principal or face value is payable to bondholders.

Effective Rate

A more accurate measure of interest or return that takes into account the effects of compounding over a specific period.

Contract Rate

The agreed-upon interest rate specified in a contract, often related to loans or financial agreements.