Question: Mean-variance optimization (MVO) is an important technique used in portfolio construction. Which of the following statements is most correct regarding MVO? a. Unconstrained MVO always

Mean-variance optimization (MVO) is an important technique used in portfolio construction. Which of the following statements is most correct regarding MVO? a. Unconstrained MVO always generates well diversified positive positions in a portfolio b. The procedure tends to be less sensitive to noise in the variance-covariance forecast than that in the return forecast C. Constrained MVO can ensure highly diversified portfolio positions d. The procedure has high tolerance to errors and noise in the input data

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