Fundamental to this theory is the idea that a sure rate of return (say, 9% per year consistent over the next five years) is preferable to a rate of return being higher on average but fluctuating through time (say average 9.5% per year but with immense fluctuations during this five year period)
A) Product Life Cycle theory
B) Portfolio theory
C) Monopolistic Advantage theory
D) none of the above

Question

Quizplus · Accepted Answer

The concept of preferring a sure rate of return over a fluctuating rate of return is a key principle of portfolio theory.

Fundamental to This Theory Is the Idea That a Sure