Under the Markowitz Model, Investors

question 21

Multiple Choice

Under the Markowitz model, investors:

• A) are assumed to be risk-seekers.
• B) are not allowed to use leverage.
• C) are assumed to be institutional investors.
• D) are always better off if they select portfolios consisting of multiple securities.

---

Definitions:

Travel Time

The duration taken to move from one location to another.

Great Depression

A severe worldwide economic downturn that took place during the 1930s, marked by high unemployment and financial instability.

Transcontinental Railroads

Railroads that extend across a continent, linking coasts and facilitating trade and travel.

Agriculture

The practice of cultivating the soil, growing crops, and raising livestock to produce food and raw materials.