The Markowitz Model Does Not Depend on the Assumption of Normally

question 51

True/False

The Markowitz model does not depend on the assumption of normally distributed security returns.

---

Definitions:

Manufacturing Overhead

All manufacturing costs other than direct materials and direct labor, including costs related to running a factory such as utilities, depreciation, and maintenance.

Direct Labour-Hours

The total hours worked directly on the production of goods or services.

External Reports

Financial documents that are prepared for parties outside the organization, such as shareholders and creditors.

Overhead Cost

Refers to ongoing expenses that are not directly tied to production but are necessary for running the business, such as rent, utilities, and insurance.