Professors Harry Markowitz and William Sharpe Received Their Nobel Prize

question 41

Multiple Choice

Professors Harry Markowitz and William Sharpe received their Nobel prize in economics for their contributions to the

• A) options pricing model.
• B) theories of working capital management.
• C) theories of risk-return and portfolio theory.
• D) theories of international capital budgeting.

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Definitions:

Logical

Pertaining to a mode of reasoning or argumentation that is consistent, valid, and based on facts or established rules of reasoning.

Conservation

A cognitive ability, identified by Piaget, that allows a person to understand that changing the form of a substance or object does not change its amount, overall volume, or mass.

Animism

The belief that objects, places, and creatures all possess a distinct spiritual essence.

Irreversibility

The cognitive inability in young children to understand that actions cannot always be undone, a concept studied in developmental psychology.