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.


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 Embedded terms in definition
 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

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We may think there is willpower involved, but more likely… change is due to want power. Wanting the new addiction more than the old one. Wanting the new me in preference to the person I am now. – George Sheehan


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