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:

Expectations

Anticipations or beliefs about what should happen in the future, often based on norms, experience, or projections.

Disengagement Theory

The assertion that successful aging requires the gradual withdrawal from social activity.

Activity Theory

The belief that people should remain engaged and active for as long as possible.

Theoretical Perspectives

Different lenses through which scholars examine and interpret social phenomena, each offering unique insights and explanations.