Sample Question #150 (finance – portfolios)
What are some of the criticisms of the mean-variance portfolio optimization model?
(Comment: as I’ve emphasized many times, when you study a model — be it financial or mathematical or statistical — try to think like a scientist and understand both its strengths and its weaknesses. Most decent textbooks will tell you what may be wrong with the model. It pays to pay attention to these details — after all, the quant job always demands a detail-oriented individual.)