PortFolio Mgmt Mock Qn following, function, expected, statements, Investment

richer

Which of the following statements is least likely to be an assumption about
investor behaviour underlying the Markowitz model?
A. Investors maximize one-period expected return
B. Investors base their decisions solely on expected return and risk
C. Investors have utility curves that are a function of expected returns and
variance.

Answer: A
“Managing Investment Portfolio: A Dynamic Process” John Maginn, Donald
Tuttle, Denis McLeavy, Jerald Pinto
2009 Modular Level I, Vol 4, p 225-226
Study Session 12-50 b;
The candidate should be able to list the assumptions about investor behaviour
underlying the Markowitz model;
Investors maximize one-period expected utility, and their utility curves demonstrate
diminishing marginal utility of wealth.

Qn: Slightly confused... just want to check if I am alone. After reading closely ..think I know where I am mistaken but...

RobertA

thanks for posting, you're not alone as I had this incorrect as well and is on the "REVIEW" pile...

Bluetick1010

The assumption that they have the same time horizon is part of capital markets theory.