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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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