Markowitz believes that any asset or portfolio of assets can be described by ____ parameter(s).
A) one
B) two
C) three
D) four
E) five

Question

Quizplus · Accepted Answer

According to Markowitz, any asset or portfolio of assets can be described by two parameters, the expected return and the variance of returns. The expected return represents the average return that can be expected from the asset or portfolio, while the variance of returns measures the degree of volatility or risk associated with the asset or portfolio.

Markowitz Believes That Any Asset or Portfolio of Assets Can