Which of the following is true regarding the Markowitz model?
A) It fully addresses the use of leverage.
B) The inputs to the model are the portfolio asset weights.
C) An investor's optimal portfolio occurs where the investor's indifference curve is tangent to the efficient frontier.
D) Markowitz diversification is inefficient diversification.

Question

Quizplus · Accepted Answer

The Markowitz model, also known as the Modern Portfolio Theory, suggests that an investor's optimal portfolio is where their indifference curve is tangent to the efficient frontier, balancing risk and return according to their preferences.

Which of the Following Is True Regarding the Markowitz Model