Question

According to the Markowitz Model of risk-return optimization theory, what are investors mainly concerned with?

a.

Maximizing risk

b.

Minimizing returns

c.

Two properties of an asset: Risk and Return

d.

Ignoring diversification

Answer: (c).Two properties of an asset: Risk and Return Explanation:Investors, according to the Markowitz Model, are mainly concerned with two properties of an asset: Risk and Return, and diversification of the portfolio involves a Risk-Return trade-off.

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Q. According to the Markowitz Model of risk-return optimization theory, what are investors mainly concerned with?

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