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Basic Question 17 of 23
Portfolio theory as described by Markowitz is most concerned with the ______.
B. elimination of systematic risk
C. effect of diversification on portfolio risk
A. identification of unsystematic risk
B. elimination of systematic risk
C. effect of diversification on portfolio risk
User Contributed Comments 7
| User | Comment |
|---|---|
| thekapila | markowitz theory is not at all concerned about market risk |
| soarer1 | Markowitz = Diversification |
| thekobe | systematic risk cant be eliminated |
| StJohnDale | Systematic risk = market risk = which is undiversifiable |
| jonan203 | markowitz = modern portfolio theory |
| davcer | markowitz=diversification, Beta=systematic risk that cant be diversified |
| khalifa92 | modern portfolio theory introduces the idea of correlations between assets. |
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Learning Outcome Statements
calculate and interpret the mean, variance, and covariance (or correlation) of asset returns based on historical data
calculate and interpret portfolio standard deviation
describe the effect on a portfolio's risk of investing in assets that are less than perfectly correlated
CFA® 2025 Level I Curriculum, Volume 2, Module 1.