2pts Question 3 Which of the following are accurate criticisms relating to Modern Portfolio Theory? Select ALL answers that apply: MPT effectively considers all possible downside risk MPT fails to adequately measure risk The logic of MPT essentially finds that significant losses have little or no chance of occurring, yet in reality they happen quite frequently MPT is based on evaluating historical returns which may not be an accurate predictor of future results Question 4 2 pts According to Modern Portfolio Theory: Because there is a risk to each asset, there is no way to effectively reduce risk in a portfolio MPT optimizes a portfolio based on risk-adjusted returns spreading out your investments in non-correlated assets reduces overall portfolio risk MPT offers investors investors the knowledge of which assets to avoid Show transcribed ace text