Modern Portfolio Theory: Introduction and Fundamentals

Minimizing financial uncertainty in investment choices

Understanding the fundamentals of consumption baskets of goods

Maximizing the income levels of alternative investments

Optimal decision of an investor for resource allocation in a portfolio (correct)

The probability of different states

Consumption baskets of goods

Alternative investments leading to different possible income levels (correct)

The level of utility provided by asset payoffs

Current price of the assets and the probability of different states

Probability of the two states and the ex post level of utility provided by the asset payoffs (correct)

The probability of the two states and the current price of the assets

Ex ante level of utility provided by the asset payoffs and the probability of different states

<p>Harry Markowitz</p> Signup and view all the answers

<p>The optimal portfolio choice</p> Signup and view all the answers