Stand-alone principle

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.
References in periodicals archive ?
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.
Chapter 5 studies the stand-alone principle on a wide variety of economic domains, such as one-input, one-output production with increasing or decreasing marginal costs and economies with public goods.