Different Investors Will Estimate the Inputs to the Markowitz Model

question 3

Multiple Choice

Different investors will estimate the inputs to the Markowitz model differently because:

• A)every investor has his/her own risk/return preferences
• B)every investor has access to different information about securities
• C)there is an inherent uncertainty in security analysis
• D)there is a random selection process used by individual investors

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Definitions:

Voluntary

Actions or practices that are undertaken by choice or without coercion, often indicating goodwill or compliance beyond what is required by law.

Ethics Report

A document that outlines the ethical standards, policies, and practices of an organization, often highlighting areas of compliance and areas for improvement.

Verification

The process of establishing the truth, accuracy, or validity of something.

Risks And Liabilities

Potential hazards or debts that could lead to negative consequences for individuals or organizations.