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Saving cash in the bank is not as attractive as it was in the past, and RBL is looking to invest some of its surplus

Saving cash in the bank is not as attractive as it was in the past, and RBL is looking to
invest some of its surplus cash. In a meeting with senior managers in the company, you
mention the Modern Portfolio Theory which was pioneered by Markowitz.
Required: Explain to the senior managers,
a. The purpose of the Markowitz Portfolio Theory,
b. What is the key component of the theory.

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