Question: Question # 3. Markowitz theory indicates to create and construct a portfolio of assets to maximize returns within a given level of risk, or to

Question # 3. Markowitz theory indicates to create and construct a

Question # 3. 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 followings: a) Justify, why an optimal portfolio should lie on security market line curve (4 Marks) b) Being an efficient market investor, justify how an efficient frontier curve can be helpful for you in portfolio selection process (4 Marks) 4

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