Q145
The Markowitz model assumes most investors are_____________.
A.
risk averse
AnswerB.
risk neutral
C.
risk seekers
D.
risk moderators
Answer: Option A
Solution
Answer: Option A
Solution:
The Markowitz model assumes most investors are risk averse. Harry Markowitz model (HM model), also known as Mean-Variance Model because it is based on the expected returns (mean) and the standard deviation (variance) of different portfolios, helps to make the most efficient selection by analyzing various portfolios of the given assets.