E believes that all investors should optimize their portfolios a la Markowitz.

E believes that all investors should optimize their portfolios a la Markowitz..

E believes that all investors should optimize their portfolios a la Markowitz. M, on the other hand, believes that a number of serious challenges exist for E’s contention to be correct and has suggested a labor capital component (a la Mayers) be included. R invokes the theory of Rubinstein, Lucas, and Breeden and believes the foundations of E and extensions of M to be incomplete. Comment on each of their assumptions, challenges, and models. 
 
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E believes that all investors should optimize their portfolios a la Markowitz.