- CFA Exams
- CFA Level I Exam
- Topic 9. Portfolio Management
- Learning Module 1. Portfolio Risk and Return: Part I
- Subject 4. Portfolio Risk, Return and Diversification
CFA Practice Question
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
Correct Answer: C
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. |