Question

4. The Markowitz model identifies the efficient set of portfolios, which offers the
(A) highest return for any given level of risk or the lowest 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​

Answer 1

Answer:

the right option (a)

Explanation:

The Markowitz model identifies the efficient set of portfolios, which offers the highest return for any given level of risk or the lowest risk for any given level of return. 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.