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The major problem with the Markowitz model is its

This question belongs to Commerce Financial Management
Financial Management
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The major problem with the Markowitz model is its_______________.

Answer & Solution
Correct Answer: Option C
The major problem with the Markowitz model is its complexity. 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.
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