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.
Do you need a Financial Planner?
Click here to get matched to financial planners near you. Free service.
Here are 10 random terms from our database: