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The Markowitz approach to portfolio construction, while informing equity research, is most often categorized under which broader school?
ATechnical analysis using chart heuristics
BBehavioural finance with sentiment factors
CModern portfolio theory under fundamental framework
DEfficient market discount-window approach
Answer & Solution
Correct answer: C. Modern portfolio theory under fundamental framework
1. Identify what the question asks: this concept maps to modernportfoliotheory (§1).
2. Apply the framework or formula relevant to the topic.
3. Eliminate distractors and arrive at the correct option (C).
_Source: ICAI BoS CA Final Paper 2, Ch 4 "Security Analysis"_
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