Because of Its Complexity,the Markowitz Model Is No Longer Used

question 25

True/False

Because of its complexity,the Markowitz model is no longer used by institutional investors.

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Definitions:

Long-term Securities

Financial instruments that typically have a maturity period of more than one year and are used to finance longer-term investments.

Temporary Working Capital

The additional working capital needed to support fluctuations in business activity above the normal level.

Capital Requirement

The amount of capital a bank or financial institution must hold to shield against financial risk and comply with regulatory standards.

Net Operating Working Capital

The difference between a company's current assets and its current liabilities, excluding interest-bearing debt.