= Separation property (finance)
{wiki=Separation_property_(finance)}
The separation property, also known as the separation theorem, is a fundamental concept in finance and is closely related to portfolio theory and investment management. The theorem indicates that investment decisions can be separated into two distinct steps: 1. **Portfolio Selection**: The first step involves selecting an optimal portfolio of risky assets based on the investor's risk preferences and the expected returns and risks of available assets.
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