According to the Markowitz model, an efficient portfolio is one that has the:
A) largest expected return for the smallest level of risk.
B) largest expected return and zero risk.
C) largest expected return for a given level of risk.
D) smallest level of risk.

Question

Quizplus · Accepted Answer

The Markowitz model, or Modern Portfolio Theory, defines an efficient portfolio as one that offers the highest expected return for a given level of risk, or equivalently, the lowest risk for a given level of expected return.

According to the Markowitz Model, an Efficient Portfolio Is One