What is used in modern portfolio theory


Problem: Assuming the Sortino ratio is a superior method of classifying asset efficiency, which two measurements should be used in modern portfolio theory intead (a.k.a Post-modern portfolio theory) ?

A) Expected return and standard density of millivariance.

B) Expected return and Downside deviation

C) Expected return and Standard deviation

D) Expected return and Probability density of negative returns.

 

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Finance Basics: What is used in modern portfolio theory
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