HomeDefinitionsCompareDebt Separation theoremThe financial definition for Separation theorem:Theory that the value of an investment to an individual is not dependent on consumption preferences. That is, investors will want to accept or reject the same investment projects by using the NPV rule, regardless of personal preference. Similar MatchesTwo fund separation theoremTwo fund separation theoremThe theoretical result that all investors will hold a combination of the risk-free asset and the market portfolio. Click to compare definitions of Separation theorem Click to view definitions beginning se |