Asked by Jaleel Joshua on Jun 28, 2024

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The measure of risk in a Markowitz efficient frontier is

A) specific risk.
B) standard deviation of returns.
C) reinvestment risk.
D) beta.

Markowitz Efficient Frontier

A graphical representation of the most efficient portfolios that provide the best possible return for a given level of risk.

Standard Deviation of Returns

A measure of the volatility of the returns on an investment, indicating the typical deviation from the average return.

Specific Risk

Specific risk is a type of risk that affects a very small number of assets, also known as unsystematic risk, and is associated with factors unique to a particular company or industry.

  • Understand the significance and concept of the efficient frontier within the sphere of portfolio theory.
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TD
Thuý Di?m Ngô Nguy?nJun 30, 2024
Final Answer :
B
Explanation :
The measure of risk in a Markowitz efficient frontier is the standard deviation of returns. This quantifies the volatility of returns for a portfolio, reflecting the degree of uncertainty or risk associated with the level of return.