After I updated my Java JDK 8 from Update 40 to 45, all of my projects opened with errors. You know, the red letters over code. When I hit \"Alt+Enter\" it says to Setup JDK
After uninstalling everything possible and trying various Java versions I found a solution. Java JDK 7 Update 80 works fine with Android Studio.
In my opinion Android Studio should support all versions of Java, but that's just me.