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) All of the above

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Quizplus · Accepted Answer

The Markowitz model assumes that investors consider the expected return and variability (risk) of their investments when making decisions. However, it does not assume that investors base decisions solely on expected return and time.

All of the Following Are Assumptions of the Markowitz Model