A$.$ Markowitz efficient portfolios or$,$ simply, efficient portfolios is a portfolios that have the highest expected return at a given level of risk. In order to construct Markowitz efficient portfolios, the theory makes some basic assumptions about asset selection behaviour.

Required

Discuss the four $(4)$ assumptions made by Professor Markowitz.

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B$.$ A feasible portfolio is a portfolio that an investor can construct given the assets available. The collection of all feasible portfolios is called the feasible set of portfolios.

Required

Using an illustration of a two assets describe the construction of feasible set of portfolios.

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