All of the Following Are Assumptions of the Markowitz Model

question 32

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) All of the above

---

Definitions:

Self-Mutilation

The act of deliberately injuring one's own body without suicidal intent, typically as a way of coping with distress.

Ethical Principle

A fundamental guideline that dictates the conduct of individuals and organizations by delineating what is right and wrong.

Justice

The principle of fairness and the moral rightness of actions and laws within society.

False Imprisonment

The act of detaining a person without legal authority, infringing on their freedom of movement.