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Mean-variance optimization (MVO) is an important technique used in portfolio construction. Which of the following statements is most correct regarding MVO? a. The procedure can

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Mean-variance optimization (MVO) is an important technique used in portfolio construction. Which of the following statements is most correct regarding MVO? a. The procedure can be sensitive to errors and noise in the input data b. Unconstrained MVO may not generate highly diversified portfolio positions c. The procedure tends to be more sensitive to noise in the variance-covariance forecast than in the return forecast d. Constrained MVO always generate highly concentrated positions

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