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Stand-Alone Principle

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Stand-alone principle
Investment approach that advocates a firm should accept or reject a project by comparing it with securities in the same risk class.

Stand-Alone Principle
The principle that a company should decide whether or not to do a project based on the profitability of similar projects with the same risk. See also: standalone profit, standalone risk.


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When discussing the fair division of a jointly owned endowment vector, the stand-alone principle demands that no individual end up doing better than if he or she alone were consuming the entire vector.
 
 
 
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