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Management · Q787

International Finance and Treasury

Graduate and Post Graduate · Management · question 787

Q787

Markowitz model presumed generally investors are

A.
risk averse
Answer
B.
risk natural
C.
risk seekers
D.
risk moderate

Answer: Option A

Solution

Answer: Option A
Solution:
Markowitz model presumed generally investors are risk averse. The term risk-averse refers to investors who, when faced with two investments with a similar expected return, prefer the lower-risk option.