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Two important assumptions of portfolio theory are: a) returns from investments are normally distributed and investors seek to minimise transaction costs. returns from investments are normally distributed and investors are risk b) averse. Oc) returns on a portfolio are normally distributed and investors are risk averse.

Two important assumptions of portfolio theory are: a) returns from investments are normally distributed and investors seek to minimise transaction costs. returns from investments are normally distributed and investors are risk b) averse. Oc) returns on a portfolio are normally distributed and investors are risk averse.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Two important assumptions of portfolio theory are: a) returns from investments are normally distributed and investors seek to minimise transaction costs. b) returns from investments are normally distributed and investors are risk averse. c) returns on a portfolio are normally distributed and investors are risk averse. the standard deviation of returns on a portfolio is normally distributed and d) investors are risk averse.
Transcribed Image Text:Two important assumptions of portfolio theory are: a) returns from investments are normally distributed and investors seek to minimise transaction costs. b) returns from investments are normally distributed and investors are risk averse. c) returns on a portfolio are normally distributed and investors are risk averse. the standard deviation of returns on a portfolio is normally distributed and d) investors are risk averse.
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