Harry Markowitz developed the theory that an efficient set of portfolios exists which represent the maximum return possible for any given level of risk.

Question

Quizplus · Accepted Answer

This statement accurately reflects Harry Markowitz's contribution to modern portfolio theory. He demonstrated that by combining different assets in a portfolio, investors can achieve higher returns while managing risk more effectively. Optimal portfolios can be identified by determining their level of risk and return, and investors can choose the mix of assets that best aligns with their individual goals and risk tolerance.

Harry Markowitz Developed the Theory That an Efficient Set of Portfolios