- CFA Exams
- CFA Level I Exam
- Topic 9. Portfolio Management
- Learning Module 63. Portfolio Risk and Return: Part II
- Subject 1. Capital Market Theory
CFA Practice Question
Which of the following is not an assumption of the Markowitz model? Investors ______
A. have homogeneous expectations.
B. maximize one-period expected utility.
C. base decisions solely on expected return and risk.
Explanation: This is not an assumption of the Markowitz model; it is an assumption of the Capital Asset Pricing Model (CAPM).
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