Under the Markowitz model, the risk of a portfolio is measured by the portfolio variance.

Question

Under the Markowitz model, the risk of a portfolio is measured by the portfolio variance.
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Solution 1

True.

Here's why:

  1. The Markowitz model, also known as Modern Portfolio Theory, was developed by Harry Markowitz in 1952. This model is used to construct a portfolio of assets in such a way that maximizes expected return for a given level of risk.

  2. In the Markowitz model, risk is quantified as Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study prob

Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
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