1) The goal of financial management is to maximize financial return given the level of risk or minimize given level of retum

Finance Dec 26, 2020

1) The goal of financial management is to maximize financial return given the level of risk or minimize given level of retum.

2. Assuming normality over distribution of stock price has important benefit because the return of a comprising two or more assets whose returns are normally distributed is also distributed

3. According to "Separation Property" of optimal investment choice, choosing an optimal risky portfolio is while construction of complete portfolio will be determined by investor's

Expert Solution

1) Answers are below in order

Blank1 - minimum/Least,
Blank2 - risk,
Blank3 - maximum/most

2) Answers are below in order

Blank 1 - Portfolio
Blank 2 - Normally Distributed

3) Answers are below in order

Blank1 - Crucial Element
Blank2 - Risk Apetite

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