Modern portfolio theory illustrates that by diversifying, an investor can achieve a higher rate of return for slightly higher level of risk.

Name: Modern portfolio theory illustrates that by diversifying, an investor can achieve a higher rate of return for slightly higher level of risk.
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Modern portfolio theory illustrates that by diversifying, an investor can achieve a higher rate of return for the same or lower level of risk, not necessarily for a higher level of risk.

Modern Portfolio Theory Illustrates That by Diversifying, an Investor Can