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Fisher's separation theorem |
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Definition of Fisher's separation theoremFisher's separation theoremThe firm's choice of investments is separate from its owner's attitudes towards
Related Terms:Fisher effectA theory that nominal interest rates in two or more countries should be equal to the required real Interest rate parity theoremInterest rate differential between two countries is equal to the difference International Fisher effectStates that the interest rate differential between two countries should be an Mutual fund theoremA result associated with the CAPM, asserting that investors will choose to invest their Portfolio separation theoremAn investor's choice of a risky investment portfolio is separate from his Separation propertyThe property that portfolio choice can be separated into two independent tasks: 1) Separation theoremThe value of an investment to an individual is not dependent on consumption Spot futures parity theoremDescribes the theoretically correct relationship between spot and futures prices. Two-fund separation theoremThe theoretical result that all investors will hold a combination of the riskfree Fisher ratethe rate of return that equates the present values international Fisher effectTheory that real interest rates in all countries should be equal, with differences in nominal rates reflecting differences in expected inflation.
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