Portfolio Management【Reading 43】Sample
In the Markowitz framework, an investor should most appropriately evaluate a potential investment based on its: A)
| intrinsic value compared to market value. |
| B)
| effect on portfolio risk and return. |
| |
Modern portfolio theory concludes that an investor should evaluate potential investments from a portfolio perspective and consider how the investment will affect the risk and return characteristics of an investor’s portfolio as a whole. |