The Markowitz model identifies the set of portfolios that offers the:
A) highest return for any given level of risk.
B) least-risk for conservative investors.
C) long-run approach to wealth accumulation for young investors.
D) risk-free alternative for risk-averse investors.

Question

Quizplus · Accepted Answer

The Markowitz model, also known as the Modern Portfolio Theory, focuses on optimizing the portfolio to achieve the highest expected return for a given level of risk, or equivalently, the lowest risk for a given level of expected return.

The Markowitz Model Identifies the Set of Portfolios That Offers