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Eduncle posted an MCQ
March 03, 2020 • 00:06 am 0 points
  • UGC NET
  • Management

The major factor that allowed Portfolio Theory to develop into Capital Market Theory is

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    Eduncle Best Answer

    Development of Capital Market Theory : The major factor that allowed Markwitz portfolio theory to develop into capital market theory is the concept of a risk-free asset, that is, an asset with zero variance. As well will show, such an asset would have zero correlation with all other risky assets and would provide the risk-free rate of return (RFR).

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