Separation property


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Separation property

The property that portfolio choice can be divided into two independent tasks: (1) Determination of the optimal risky portfolio, which is a purely mathematical problem, and (2) the personal choice of the best mix of the optimal risky portfolio and the risk-free asset, which depends on a person's degree of risk aversion.

Separation Property

In Markowitz portfolio theory, the ability of a portfolio manager to identify a client's needs by separating them into two separate duties. The first duty is to pick the risky securities that will have the highest return. This is a mathematical equation and can be accomplished easily. The second duty is to decide which securities meet individual clients' own desires for risk. Portfolio managers must discuss investment goals and risk averseness with clients in order to perform the second duty.
References in periodicals archive ?
Several researchers focus on melamine sponges to study their oil-water separation property. Ke et al.
[26] studied the oil/water separation property of expanded polyethylene (EPE) foam, which is most commonly used for packaging as a shock absorber and most abundantly available in the surroundings as waste.
For the gas separation property, it was shown that the incorporation of PEG can increase the permeation rate of [O.sub.2] and [N.sub.2] gases.
Lebanese law does not recognize noneconomic contributions to a marriage or the concept of marital property, so after a separation property reverts to the spouse in whose name it is registered -- typically the husband -- regardless of who has contributed to it or what role a wife may have played in supporting her husband throughout their marriage.
Chromatography technique is of paramount importance in the field of biosciences owing to its bimolecular mixture separation property. Increasing application rate of chromatography in pharmaceutical and biotechnology industries is expected to be the prime growth driver for the chromatography accessories and consumables market in the coming six years.
Figure 3 shows the extremely good separation property with baseline separation of nitrogen and methane at TCD 1.
Foveon X3 image sensors are the world's only direct image sensors, which capture red, green, and blue light at every pixel location, and are the first image sensors that leverage silicon's inherent color separation property. When silicon is exposed to light, blue light is absorbed near the surface, green light is absorbed in the middle, and red light is absorbed deep within the silicon.
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