The correct answer is C. Markowitz.
The Markowitz model is a portfolio optimization model that helps investors to select the best combination of assets to maximize their expected return while minimizing their risk. The model was developed by Harry Markowitz in 1952 and is considered to be one of the most important contributions to modern finance.
The Markowitz model is based on the concept of diversification, which means that investors can reduce their risk by holding a portfolio of assets that are not perfectly correlated. The model uses a quadratic programming algorithm to find the optimal portfolio weights that maximize the expected return for a given level of risk.
The Markowitz model has been widely used by investors and academics for over 60 years. It is a powerful tool for portfolio optimization, but it is important to note that it is only a model and it does not guarantee success. Investors should always consult with a financial advisor before making any investment decisions.
The other options are incorrect for the following reasons:
- Option A, the Miller-Orr model, is a cash management model that helps businesses to determine how much cash they should hold on hand.
- Option B, the Black-Scholes model, is a pricing model for options.
- Option D, the Gordon model, is a dividend discount model that is used to value stocks.