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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.

 
 

Follow this link for all the terms related to ratio.

 
 Embedded terms in definition
 Dependent
Npv
Will
 
 Related Terms
 Fisher's separation theorem
Interest rate parity theorem
Mutual fund theorem
Portfolio separation theorem
Separation property
Spot futures parity theorem
Two fund separation theorem

<< Separation property Sequential >>

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