There Have Been Two Major Attacks on Standard Portfolio Theory

question 53

Multiple Choice

There have been two major attacks on standard portfolio theory. Which of the below is ONE of these?

• A) One is the attack by the behavioral finance camp as to how consumers make decisions.
• B) One is the attack on the nature of the return distribution based on what has been theoretically decreed for financial assets.
• C) One is the attack on binomial distribution of returns assumed for financial assets.
• D) One is the attack by the behavioral finance camp as to how investors make decisions.

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Definitions:

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