Which of the Following Is Not an Assumption of Markowitz

question 2

Multiple Choice

Which of the following is not an assumption of Markowitz portfolio theory?

• A) A single investment period
• B) Investor preferences are based only on expected return and risk
• C) Low transactions costs
• D) The availability of a risk-free asset

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Definitions:

Adjusted Coefficient

Refers to statistical measures that have been modified to account for certain factors or variables, enhancing the comparability or accuracy of the results.

Independent Variables

Variables in an experiment that are manipulated or categorized to determine their effect on dependent variables.

Sample Size

The count of samples or entities selected from a bigger group intended for statistical examination.

Regression Parameters

Statistical coefficients in a regression model that represent the relationship between independent variables and the dependent variable.