Which of the following is the theories searching the patterns in randomness?
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A. B. C. D.B
The theory that searches for patterns in randomness is called Chaos theory. It is a branch of mathematics that studies the behavior of dynamic systems that are highly sensitive to initial conditions. In other words, it examines the behavior of systems that are deterministic in nature, but whose outcomes are unpredictable due to the slightest variations in their initial conditions.
Chaos theory was developed in the late 20th century and has been applied to a variety of fields, including physics, biology, economics, and finance. It has been used to study complex systems such as weather patterns, population growth, and the stock market.
Elliott wave theory, on the other hand, is a method of technical analysis that attempts to forecast market trends based on wave patterns. It is not related to chaos theory or the study of randomness.
Portfolio theory, also known as modern portfolio theory, is a framework for constructing investment portfolios that seeks to maximize returns for a given level of risk. It does not involve the study of randomness or patterns in randomness.
Valuation theory is the study of how to determine the value of an asset or security. It is used to evaluate investments and make informed investment decisions. It is not related to the study of randomness or patterns in randomness.
Therefore, the correct answer to the question is B. Chaos theory.