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The following represent advantages of the full Markowitz Model vis--vis the Index Model, EXCEPT: No...

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Accounting

The following represent advantages of the full Markowitz Model vis--vis the Index Model, EXCEPT: No assumptions are made regarding the correlation or interdependence of returns among firms, even within the same industry. Since covariance estimates are usually more accurate than alpha and beta estimates, estimation errors for the Markowitz Model are often lower. The Markowitz Model is more flexible and relies less on assumptions. O Since it does not separate risk into systematic and nonsystematic, it can more realistically account for interdependence of returns.
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The following represent advantages of the full Markowitz Model vis--vis the Index Model, EXCEPT: No assumptions are made regarding the correlation or interdependence of returns among firms, even within the same industry. Since covariance estimates are usually more accurate than alpha and beta estimates, estimation errors for the Markowitz Model are often lower. The Markowitz Model is more flexible and relies less on assumptions Since it does not separate risk into systematic and nonsystematic, it can more realistically account for interdependence of returns

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