Feedback for Chi and Chen are taking about mean-variance framework and efficient frontier. Please read the following statements and mark which one is/are correct?Statement 1: Under mean-variance framework, we assume normal distribution (elliptical distribution)Statement 2: If the distribution is skewed or has fat tails then mean-variance assumption is void and can provide inaccurate results.
Incorrect answer. Both statements are right.
Location: F1B4C1 Measures of Fin Risk Quiz
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