Recent thinking in theoretical finance grapples with the issue of risk and return for combinations of stocks. This theory is called:
A)portfolio theory.
B)expectations theory.
C)efficient market theory.
D)All of the above

Question

Quizplus · Accepted Answer

Portfolio theory is the specific theory that deals with risk and return for combinations of stocks. Expectations theory and efficient market theory are related concepts, but they do not directly deal with portfolio management. Therefore, the correct answer is A - portfolio theory.

Recent Thinking in Theoretical Finance Grapples with the Issue of Risk