Question

Modern portfolio theory was originally advanced by:

		Harry Markowitz and the identification of standard deviation as a measure of risk
		William Sharpe and the capital asset pricing model
		Eugene Fama and the efficient markets hypothesis
		Stephen Ross and the arbitrage pricing theory

Answer 1

Answer:Modern Portfolio Theory was originally advanced by Harry Markowitz and the identification of standard deviation as a measure of risk

Modern Portfolio theory states that risk averse investors can create a portfolio that can in turn maximize expected return given a level of market risk and emphasizing that risk is inherent to higher rewards.It was developed by Harry Markowitz in 1952 .

William Sharpe and CAPM

False.William Sharpe is credited with developing the Capital Asset Pricing model in 1960s

Eugene Fama and the efficient market hypothesis

False.Efficient market hypothesis is an investment theory developed using concepts from Eugene Fama's book published in 1970

"Efficient Capital Markets : A Review of theory And Empirical Work"

Stephen Ross and the arbitrage pricing theory

False.Stephen Ross pioneered the Arbitrage Pricing theory in 1976.