Author Question: A portfolio optimization model used to construct a portfolio that minimizes risk subject to a ... (Read 113 times)

ericka1 · **on:** Jun 24, 2018

A portfolio optimization model used to construct a portfolio that minimizes risk subject to a constraint requiring a minimum level of return is known as
a. capital budgeting pricing model.
b. market share optimization model.
c. Hauck maximum variance portfolio model.
d. Markowitz mean-variance portfolio model.

Question 2

Which of the following regression models is used to model a nonlinear relationship between the independent and dependent variables by including the independent variable and the square of the independent variable in the model?
a. a multiple regression model b. quadratic regression model
c. a simple regression model d. a least squares regression model

milbourne11 · **Reply #1 on:** Jun 24, 2018

Answer to Question 1

d
RATIONALE: A portfolio optimization model used to construct a portfolio that minimizes risk subject to a constraint requiring a minimum level of return is known as Markowitz mean-variance portfolio model.

Answer to Question 2

b
RATIONALE: A quadratic regression model is a regression model in which a nonlinear relationship between the independent and dependent variables is fit by including the independent variable and the square of the independent variable in the model.