Two-fund separation theorem(redirected from Two Fund Separation Theorem)
Two-fund separation theorem
The theoretical result that all investors will hold a combination of the risk-free asset and the market portfolio.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
Two-Fund Separation Theorem
A theory stating that under conditions in which all investors borrow and lend at the riskless rate, all investors will either choose to possess a risk-free portfolio or the market portfolio. See also: Markowitz portfolio theory.
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