The Markowitz Model is based on several assumptions regarding investor behaviour. Which of the following is NOT an assumption? Investors consider each investment alternative as being represented by a probability distribution of expected returns over some holding period. Investors maximize one-period expected utility. Investors estimate the risk of the portfolios on the basis of the variability of expected returns. Investors base decisions solely on expected return and risk. None of the above answers [all are assumptions of the Markowitz Model
The Markowitz Model is based on several assumptions regarding investor behaviour. Which of the following is NOT an assumption? Investors consider each investment alternative as being represented by a probability distribution of expected returns over some holding period. Investors maximize one-period expected utility. Investors estimate the risk of the portfolios on the basis of the variability of expected returns. Investors base decisions solely on expected return and risk. None of the above answers [all are assumptions of the Markowitz Model
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 13QTD
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- The Markowitz Model is based on several assumptions regarding investor behaviour. Which of the following is NOT an assumption?
- Investors consider each investment alternative as being represented by a probability distribution of expected returns over some holding period.
- Investors maximize one-period expected utility.
- Investors estimate the risk of the portfolios on the basis of the variability of expected returns.
- Investors base decisions solely on expected return and risk.
None of the above answers [all are assumptions of the Markowitz Model
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