Question: The Markowitz model is based on several assumptions regarding investor behavior. Which of the following is NOT such an assumption? Investors consider each investment alternative
The Markowitz model is based on several assumptions regarding investor behavior. Which of the following is NOT such an assumption? Investors consider each investment alternative as being represented by a probability distribution of expected returns over some holding period. Investors maximize the risk-return profile. Investors estimate the risk of the portfolio on the basis of the variability of expected returns. Investors base decisions solely on expected return and risk. None of the above (that is, all are assumptions of the Markowitz model)
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