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One important assumption behind portfolio theory is that investors are mean variance maximizers. What is the meaning of this? Explain why this assumption is important

  1. One important assumption behind portfolio theory is that investors are “mean variance maximizers.” What is the meaning of this? Explain why this assumption is important to draw the efficient frontier.

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MeanVariance Maximizers in Portfolio Theory In portfolio theory the assumption that investors are meanvariance maximizers refers to their preference f... blur-text-image

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