an says: The MVO model is mathematically optimal and is immune from judgment, which makes it superior to the kind of portfolios practitioners construct. Which one of the following is not a practical difficulty with the MVO portfolio model:

Jan says: The MVO model is mathematically optimal and is immune from judgment, which makes it superior to the kind of portfolios practitioners construct. Which one of the following is not a practical difficulty with the MVO portfolio model:

optimal portfolios change their allocations with small changes in inputs

optimal portfolios are usually poorly diversified

historical return data produces portfolios that would have been optimal in the past

accurate historical data on returns is difficult to find