Under the Markowitz Model,the Risk of a Portfolio Is Measured

question 15

True/False

Under the Markowitz model,the risk of a portfolio is measured by the standard deviation of the portfolio return.

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Definitions:

Lender Of Last Resort

An institution, typically a country's central bank, that offers loans to banks or other financial institutions that are experiencing financial difficulty or are considered highly risky.

Open-Market Purchase

The buying of government securities by the central bank from the market to increase the money supply and decrease the interest rate.

Store Of Value

An asset that can be saved, retrieved, and exchanged in the future without significantly losing value.

Currency

The system of money in common use in a country, which facilitates the exchange of goods and services.