The objective function for portfolio selection problems usually is maximization of expected return or
A)maximization of investment types
B)minimization of cost
C)minimization of risk
D)maximization of number of shares

Question

Quizplus · Accepted Answer

The objective function for portfolio selection is to minimize risk or maximize return. Since the question specifically asks about the objective function, the best choice is C which minimizes risk. A and D are incorrect as they do not relate to the objective function, and B is incorrect as it is not typically the objective function in portfolio selection problems.

The Objective Function for Portfolio Selection Problems Usually Is Maximization