CFA Practice Question

There are 294 practice questions for this study session.

CFA Practice Question

Portfolio theory as described by Markowitz is most concerned with the ______.

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.
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