According to the Markowitz model, rational investors will seek efficient portfolios because these portfolios are optimal based on:
A) expected return.
B) risk.
C) expected return and risk.
D) transactions costs.

Question

Quizplus · Accepted Answer

The Markowitz model, also known as the Modern Portfolio Theory, suggests that rational investors will seek efficient portfolios that offer the best possible expected return for a given level of risk, or the lowest possible risk for a given level of expected return.

According to the Markowitz Model, Rational Investors Will Seek Efficient