Separation theorem

The value of an investment to an individual is not dependent on consumption preferences. All investors will want to accept or reject the same investment projects by using the NPV rule, regardless of personal preference. The New York Times Financial Glossary

Financial and business terms. 2012.

Look at other dictionaries:

  • separation theorem — Theory that the value of an investment to an individual is not dependent on consumption preferences. That is, investors will want to accept or reject the same investment projects by using the NPV rule , regardless of personal preference.… …   Financial and business terms

  • Mutual fund separation theorem — In portfolio theory, a mutual fund separation theorem, mutual fund theorem, or separation theorem is a theorem stating that, under certain conditions, any investor s optimal portfolio can be constructed by holding each of certain mutual funds in… …   Wikipedia

  • Fisher separation theorem — In economics, the Fisher separation theorem asserts that the objective of a will be the maximization of its present value, regardless of the preferences of its owners. The theorem therefore separates management s productive opportunities from the …   Wikipedia

  • Sturm separation theorem — In mathematics, in the field of ordinary differential equations, Sturm separation theorem, named after Jacques Charles François Sturm, describes the location of roots of homogeneous second order linear differential equations. Basically the… …   Wikipedia

  • Fisher's separation theorem — The firm s choice of investments is separate from its owner s attitudes towards investments. Also refered to as portfolio separation theorem. The New York Times Financial Glossary The notion that a firm s choice of investments is separate from… …   Financial and business terms

  • Portfolio separation theorem — An investor s choice of a risky investment portfolio is separate from his attitude towards risk. Related:Fisher s separation theorem. The New York Times Financial Glossary …   Financial and business terms

  • portfolio separation theorem — Theory that an investor s choice of a risky investment portfolio is separate from his attitude towards risk. Related: Fisher s separation theorem. Bloomberg Financial Dictionary …   Financial and business terms

  • Fisher's Separation Theorem — A theory stating that: 1. A firm s choice of investments are separate from its owner s attitudes towards the investments. 2. It is possible to separate a firm s investment decisions from the firm s financial decisions. This theory says a firm s… …   Investment dictionary

  • Two-fund separation theorem — The theoretical result that all investors will hold a combination of the risk free asset and the market portfolio. The New York Times Financial Glossary …   Financial and business terms

  • two-fund separation theorem — The theoretical result that all investors will hold a combination of the risk free asset and the market portfolio. Bloomberg Financial Dictionary …   Financial and business terms

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.