Financial Theory

Financial Theory is the study of how people and organizations make decisions regarding money, investments, and resources. It examines concepts like risk, return, market efficiency, and the time value of money. By analyzing how individuals and markets behave, financial theory aims to explain asset pricing, investment strategies, and overall economic dynamics. It provides a framework for understanding financial markets and guides decision-making in finance, from personal investments to corporate finance and beyond. Ultimately, it helps us understand the principles that govern how money works in various contexts.