Separation property

The property that portfolio choice can be separated into two independent tasks: (a) determination of the optimal risky portfolio, which is a purely technical problem, and (b) the personal choice of the best mix of the risky portfolio and the risk-free asset.

Similar financial terms

Two-fund separation theorem
The theoretical result that all investors will hold a combination of the risk-free asset and the market portfolio.

Separation theorem
The value of an investment to an individual is not dependent on consumption preferences. All investors will want to accept or reject the same investment projects by using the NPV rule, regardless of personal preference.

Portfolio separation theorem
An investor's choice of a risky investment portfolio is separate from his attitude towards risk.

Property rights
Rights of individuals and companies to own and utilize property as they see fit and to receive the stream of income that their property generates.

Intellectual Property
This terms refers to all assets of a company that have an intellectual nature to them. They are often referred to as "soft" assets such as trademarks, logos, patents, software, trade secrets, brands, industrial designs, music, colors, designs, etc. They usually have intangible value unlike hard assets such as land, buildings, and equipment.

Foreign Investor in Real Property Tax Act of 1980
Under FIRPTA (Foreign Investor in Real Property Tax Act of 1980), and the Economic Recovery Act of 1981, unless an exemption is granted by the IRS, upon the sale of real property owned by offshore (foreign) persons, the agency, attorney or escrow officer handling the transaction is required to withhold capital gains taxes at the closing of the sale transaction. Unless withheld and submitted to the IRS, the party handling the sale transaction is personally liable for the taxes.

Termbox
Digg the financial term Digg it!
Share financial term on facebook! Share on Facebook
Add to Yahoo My Web Add to Yahoo!
Add to Google bookmarks! Add to Google
Add financial term to del.icio.us Add to del.icio.us
Add financial term to Reddit! Add to Reddit
Add financial term on Spurl Add to Spurl
Add financial term to Furl Add to Furl
E-mail term to a friend! E-mail term to friend!
Printer friendly version Printer friendly version


Did you know?

Accounts payable

Money a company owes to its suppliers


Popular terms


About us  About bizterms.net
Contact us  Contact us
Bookmark us