QUESTION 14

Which of the following statements about Markowitz's portfolio theory is/are correct?

1. Investors holding approximately 30 securities will be able to get rid of 95% of all systematic risk

2. Portfolio theory considers total risk ie both unsystematic and systematic risk

3. . The existence of risk-free assets is critical in the identification of the capital market line

Options

A (3) is correct

B (1) and (2) are correct

c(2) and (3) are correct

All three statements are correct

E (1) is correct