The Markowitz model identifies the efficient set of portfolios,which offers the
A)highest return for any given level of risk or the lowest risk for any given level of return.
B)least-risk portfolio for a conservative,middle-aged investor.
C)long-run approach to wealth accumulation for a young investor.
D)risk-free alternative for risk-averse investors.

Question

Quizplus · Accepted Answer

The Markowitz model's goal is to identify the efficient set of portfolios that offer the highest return for any given level of risk or the lowest risk for any given level of return. Therefore, option A is the correct answer. Option B is too narrow, and option C and D are incorrect as they do not accurately describe the Markowitz model's objective.

The Markowitz Model Identifies the Efficient Set of Portfolios,which Offers