B. Malkiel promotes “The Get Rich Slowly but Surely” method that advises investors to stay even, meaning, investments must secure a rate of return equal to inflation. Ideally, most investors would want holdings that have rate of return higher than inflation. Rate of Return > Inflation.

C. Firm-Foundation Theory states that assets rely on their present conditions and future prospects in order to establish an intrinsic value. The prospective dividends are then factored into the stock’s market price; hence, it’s intrinsic value rises/falls.

D. Castle-in-the-Air Theory is one that focuses on the dreams and wants of masses. For example, the Tulip Bulb Craze was a classic example of a self-fulfilling prophecy. The prices of the bulbs skyrocketed because the buyers made them by way of DEMAND. There were not enough bulbs to go a

Some topics in this essay:
Craze Chapters, Pricing Model, Portfolio Theory, According Malkiel, Bulb Craze, Keypoints Chapters, Random Walk, Reports STP, Hemline Indicator, Firm-Foundation Theory, random walk, rate return, stock prices, random walk theory, eliminate middlemen malkiel, stock ½, portfolio theory, technical analysis, middlemen malkiel, controlled using diversification, short run, modern portfolio theory, modern portfolio, risk controlled using, systematic risk,