Asked by Jaleel Joshua on Jun 28, 2024
Verified
The measure of risk in a Markowitz efficient frontier is
A) specific risk.
B) standard deviation of returns.
C) reinvestment risk.
D) beta.
Markowitz Efficient Frontier
A graphical representation of the most efficient portfolios that provide the best possible return for a given level of risk.
Standard Deviation of Returns
A measure of the volatility of the returns on an investment, indicating the typical deviation from the average return.
Specific Risk
Specific risk is a type of risk that affects a very small number of assets, also known as unsystematic risk, and is associated with factors unique to a particular company or industry.
- Understand the significance and concept of the efficient frontier within the sphere of portfolio theory.
Verified Answer
Learning Objectives
- Understand the significance and concept of the efficient frontier within the sphere of portfolio theory.
Related questions
Consider the Following Information for Three Stocks,A,B,and C,and Portfolios of ...
What Is the Effect on Portfolio Beta of a Larger ...
What Happens to Portfolios That Cannot Be Dominated ...
A Highly Risk-Averse Investor Is Considering Adding One Additional Stock ...
An Investor Can Design a Risky Portfolio Based on Two ...