Mutual Fund Theorem

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Mutual fund theorem

A result associated with the CAPM, asserting that investors will choose to invest their entire risky portfolio in a market-index or mutual fund.

Mutual Fund Theorem

A theory stating that all investors ought to place all their risk capital into a mutual fund containing the exact same securities. They then ought to place the remainder of their investments in risk-free securities. The theory recommends a single mutual fund because Markowitz portfolio theory states that there is precisely one portfolio with the maximum return for each level of risk. The mutual fund theorem purports to maximize the return for all capital that an investor puts at risk. It was first suggested by James Tobin.

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No references found			One of the most famous results in mean-variance analysis is James Tobin's mutual fund theorem of portfolio choice, according to which all investors should combine cash with a single portfolio or "mutual fund" of risky assets. Strategic Asset Allocation: Portfolio Choice for Long-Term Investors by Campbell, John Y. / NBER Reporter			Muqaasamah Muqarada Muqtaat MUR Muraahanah Murabaha Muriel Siebert Murphy's Law Musharika Musical Instrument Insurance Mustard Gas Mutaqabbil Mutilated Security Mutua Mutual Mutual Assent Mutual Association Mutual Atomic Energy Reinsurance Pool Mutual Company Mutual Exclusion Doctrine Mutual Fund Mutual Fund Cash-to-Assets Ratio Mutual Fund Custodian Mutual Fund Liquidity Ratio Mutual Fund Share Class Mutual Fund Theorem Mutual Fund Timing Mutual Insurance Company Mutual Life-Assurance Company Mutual Mortgage Insurance Fund Mutual Offset Mutual Recognition Agreement Mutual Savings Bank Mutual Will Mutual-Fund Advisory Program Mutuality of Obligation Mutualization Mutualization of Risk Mutually Exclusive Mutually Exclusive Investment Mutually Exclusive Investment Decision Mutually Exclusive Investment Decisions Mutually Owned Stock Exchange Mutui a pagamento graduale Mutuo a pagamento rapido Mutuo casa Mutuo chirografario Mutuo ipotecario Muzuna MV MVQ			Mutual Fund Class B Shares Mutual Fund Class C Share Mutual Fund Class C Shares mutual fund company Mutual fund custodian Mutual Fund Custodians Mutual Fund Dealers Association Mutual Fund Dealers Association of Canada Mutual Fund Education Alliance Mutual Fund Facts About Individual Stocks Mutual Fund Investor's Center Mutual Fund Liquidity Ratio Mutual Fund Liquidity Ratios Mutual Fund Management Company Mutual Fund Management System Mutual Fund Quotation Service Mutual Fund Quotation System Mutual Fund Reform Act of 2004 Mutual Fund Round Table Mutual Fund Share Class Mutual Fund Share Classes Mutual Fund Share Classes Mutual fund shares Mutual fund shares Mutual fund shares Mutual fund shares Mutual Fund Symbol Mutual Fund Symbols Mutual Fund Theorem Mutual Fund Timing Mutual Fund Wrap Mutual Fund Wraps Mutual funding Mutual funding Mutual funding Mutual funding Mutual funds Mutual funds Mutual funds Mutual funds Mutual Funds and Retirement Plans Mutual Funds Association of Pakistan Mutual Funds Working Group mutual goal setting mutual goal setting mutual goal setting mutual goal setting Mutual Health Insurance Scheme Mutual Holding Company Mutual Housing Association of Greater Hartford Mutual Housing Association of New York, Inc. Mutual Housing Association of Tompkins County mutual impedance Mutual Improvement Association Mutual Improvement Certificate Mutual Improvement Certificate Mutual Improvement Certificates Mutual Improvement Certificates Mutual independence

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