Financial Planner

Category - Investment Planning

What model should you have a working knowledge of in order to best measure the risk and return of a portfolio allocation?
  1. Tangent portfolio
  2. Priced source of risk
  3. Markowitz
  4. Array
Explanation
Answer: C - In 1952, Harry Markowitz developed and published an established model that correctly measures the risk and return of a given portfolio allocation. This was later built upon but forms the basis of today’s models.
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