The correct answer is: A. a-1, b-2, c-3
Prof. Robin is a professor of finance at the University of Chicago. He is known for his work on security profit. Prof. Milton Kafoglis is a professor of finance at the University of Pennsylvania. He is known for his work on Marris growth maximisation. Prof. Rothschild is a professor of finance at the University of California, Berkeley. He is known for his work on output maximisation.
Security profit is the difference between the market value of a security and its book value. Marris growth maximisation is a theory of corporate finance that argues that firms should maximise their growth rate subject to a constraint on their profitability. Output maximisation is a theory of corporate finance that argues that firms should maximise their output subject to a constraint on their costs.
In the question, List-I contains the names of three professors of finance, and List-II contains three theories of corporate finance. The correct answer is the one that matches each professor with the theory that they are best known for.
Option A matches Prof. Robin with security profit, Prof. Kafoglis with Marris growth maximisation, and Prof. Rothschild with output maximisation. This is the correct answer because it is the only option that matches each professor with the theory that they are best known for.
Option B matches Prof. Robin with Marris growth maximisation, Prof. Kafoglis with output maximisation, and Prof. Rothschild with security profit. This is not the correct answer because it does not match Prof. Robin with the theory that he is best known for, which is security profit.
Option C matches Prof. Robin with output maximisation, Prof. Kafoglis with security profit, and Prof. Rothschild with Marris growth maximisation. This is not the correct answer because it does not match Prof. Kafoglis with the theory that he is best known for, which is Marris growth maximisation.
Option D matches Prof. Robin with Marris growth maximisation, Prof. Kafoglis with security profit, and Prof. Rothschild with output maximisation. This is not the correct answer because it does not match Prof. Rothschild with the theory that he is best known for, which is output maximisation.