Home >  Term: separation property
separation property

The property that portfolio choice can be divided into two independent tasks: (1) Determination of the optimal risky portfolio, which is a purely mathematical problem, and (2) the personal choice of the best mix of the optimal risky portfolio and the risk-free asset, which depends on a person's degree of risk aversion.

0 0

Kūrėjas

  • Jessehe
  •  (V.I.P) 32013 points
  • 40.13% positive feedback
© 2024 CSOFT International, Ltd.