Which of the following is not considered as the assumption of Markowitz Model of Portfolio Analysis ?

CS Executive · Financial and Strategic Management · PYQS · June 2022
Which of the following is not considered as the assumption of Markowitz Model of Portfolio Analysis ?
(A) Investors consider each investment alternative as being represented by a probability distribution of expected returns over some holding period
(B) Individuals do not estimate risk on the basis of variability of expected returns
(C) Individuals do not base decisions solely on expected returns and variance only
(D) Both (B) and (C)

Answer & Explanation:

Correct Answer: Option (D)

Official answer key: (D).

Topics: Financial Management

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