- 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
Assumptions of the Markowitz model include which of the following?
A. Investors estimate portfolio risk using beta.
B. Investors base decisions solely on historical return and systematic risk.
C. Investors seek to maximize one-period expected utility.
Explanation: The Markowitz model assumes that investors seek to maximize one-period expected utility.
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