1. highest return for any given level of risk or the lowest risk for any given level of return
  2. least-risk portfolio for a conservative, middle-aged investor
  3. long-run approach to wealth accumulation for a young investor
  4. risk-free alternative for risk-averse investors
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1 Answers

Answer: Option 1

The Markowitz model identifies the efficient set of portfolios, which offers the highest return for any given level of risk or the lowest risk for any given level of return. Harry Markowitz model (HM model), also known as Mean-Variance Model because it is based on the expected returns (mean) and the standard deviation (variance) of different portfolios, helps to make the most efficient selection by analyzing various portfolios of the given assets.

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