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The Mutual Fund Separation Theorem is a fundamental concept in modern portfolio theory that was notably formalized by economists such as James Tobin. The theorem essentially states that under certain conditions, investors can achieve optimal portfolios through a combination of a risk-free asset and a single mutual fund that contains a well-diversified portfolio of risky assets.

Ancestors (6)

  1. Financial economics
  2. Actuarial science
  3. Applied mathematics
  4. Fields of mathematics
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