Portfolio separation theorem

Definition:

Theory that an investor's choice of a risky investment portfolio is separate from his attitude towards risk. Related: Fisher's separation theorem.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Wind bond

Wind bond is a type of Catastrophic Bond. The bond's payout is linked to the losses incurred from natural wind-related catastrophes such as hurricane, typoon, or monsoon.

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