According to Markowitz,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

An efficient portfolio according to Markowitz is one that has the largest expected return for a given level of risk. This means that the portfolio has optimized the trade-off between risk and return, and there is no other portfolio with the same level of risk that has a higher expected return. So, the portfolio is efficient because it is maximizing returns for a given level of risk, which is the ultimate goal of portfolio management.

According to Markowitz,an Efficient Portfolio Is One That Has the