Which of the Following Is Not True Regarding Markowitz Portfolio

question 44

Multiple Choice

Which of the following is not true regarding Markowitz portfolio theory? The Markowitz model:

• A) is considered a three-parameter model.
• B) implies that no portfolio on the efficient frontier dominates any other portfolio on the efficient frontier.
• C) is cumbersome to work with due to the large variance-covariance matrix needed for a set of stocks.
• D) generates an entire set, or efficient frontier, of portfolios.

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