Skip to content

Super Finance Glossary

Over 10,000 financial glossary terms...

Browse by Letter: A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
 Search Tips

Separation Property

Separation Property
Definition: The property that portfolio choice can be divided into two independent tasks: (1) Determination of the optimal risky portfolio, which is a purely mathematical problem, and (2) the personal choice of the best mix of the optimal risky portfolio and the risk-free asset, which depends on a person's degree of risk aversion.