All of the Following Are Assumptions of the Markowitz Model

question 56

Multiple Choice

All of the following are assumptions of the Markowitz model EXCEPT

• A) risk is measured based on the variability of returns.
• B) investors maximize one-period expected utility.
• C) investors' utility curves demonstrate properties of diminishing marginal utility of wealth.
• D) investors base decisions solely on expected return and time.
• E) there are no tax costs involved.

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Definitions:

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