CFA Practice Question

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CFA Practice Question

Which of the following statements is least likely to be an assumption about investor behaviour underlying the Markowitz model?
A. Investors maximize one-period expected return.
B. Investors base their decisions solely on expected return and risk.
C. Investors have utility curves that are a function of expected returns and variance.
Explanation: Investors maximize one-period expected utility, and their utility curves demonstrate diminishing marginal utility of wealth.

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