Q. Markowitz theory indicates to create and construct a portfolio of assets to maximize returns within a given level of risk , or to devise one with a desired,specified and expected level of return with the least amount of risk.Under this broader concept,answer the following: a) Justify , why an optimal portfolio should lie on security market line curv?   b) Being an efficient market investor , justify how an efficient frontier curve can be helpful for you in portfolio selection process

Q: process

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Portfolio Management

Portfolio management is the process by which an investor decides that how the person will invest in a variety of assets in order to get a desired return in the future. A portfolio means a pool of assets that includes securities, bonds, and other investment instruments which helps in risk minimization of the money that has been invested. In other words, it can be said that a portfolio means a combination of assets in which an investor decides to invest their money in order to get a lump sum return in the future or even a series of cash flow that the person is expecting at the end of their job life.