Home
E-Mail
Latest

Separation Principle

What is it? The principle that portfolio choice can be separated into two independent tasks: (1) determination of the optimal risky portfolio, which is purely technical problem, and (2) the personal choice of the best mix of the risky portfolio and the risk-free asset.

Added By: Arianna

The Separation Principle definition has been viewed 46 Time(s)!




Send To Friends!

If you'd like to send the Separation Principle definition to yourself or to your friends/colleagues, just enter the e-mail addresses in the boxes below -





We hope you now understand the meaning of Separation Principle. If you need any more information on this term, please don't hesitate to contact us.