Mutual fund theorem

 

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Mutual fund theorem

A result associated with the CAPM, asserting that investors will choose to invest their entire risky portfolio in a market-index or mutual fund.



Mutual fund theorem

Similar Matches

Rybczynski Theorem

Rybczynski Theorem

The property of the Heckscher-Ohlin Model that, at constant prices, an increase in the endowment of one factor increases the output of the industry that uses that factor intensively and reduces the output of the other (or some other) industry. Due to Rybczynski (1955).


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.


Coase Theorem

Coase Theorem

The proposition that the allocation of property rights does not matter for economic efficiency, so long as they are well defined and a free market exists for the exchange of rights between those who have them and those who do not. Due to Coase (1960).


Heckscher-Ohlin Theorem

Heckscher-Ohlin Theorem

The proposition of the Heckscher-Ohlin Model that countries will export the goods that use relatively intensively their relatively abundant factors.


Central Limit Theorem

Central Limit Theorem

The Law of Large Numbers states that as a sample of independent, identically distributed random numbers approaches infinity, its probability density function approaches the normal distribution. See: Normal Distribution.


Further Suggestions

Gains from trade theorem
First theorem of welfare economics
Separation theorem
Spot futures parity theorem
Heckscher-Ohlin-Vanek Theorem
Stolper-Samuelson Theorem
Interest rate parity theorem
Lerner Symmetry Theorem
Kemp-Wan Theorem
Second theorem of welfare economics
Factor Price Equalization Theorem


 
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