A portfolio optimization model used to construct a portfolio that minimizes risk subject to a constraint requiring a minimum level of return is known as
A)capital budgeting pricing model.
B)market share optimization model.
C)Hauck maximum variance portfolio model.
D)Markowitz mean-variance portfolio model.

Question

Quizplus · Accepted Answer

The Markowitz mean-variance portfolio model is specifically designed to construct a portfolio that minimizes risk while also taking into consideration the required minimum level of return. It is a widely used optimization model in finance and is based on the concept of diversification to achieve the desired results. The other options given are not relevant to this context.

A Portfolio Optimization Model Used to Construct a Portfolio That