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Glossary   >   S   >   "Separation theorem" Definition            Separation theorem The value of an investment to an individual is not dependent on consumption preferences. All investors will want to accept or reject the same investment projects by using the N.P.V. rule, regardless of personal preference. Glossary    Dictionary Search (powered by Google) WWW ITLOCUS.COM GLOSSARY.ITLOCUS.COM Translate a web page (powered by Google)      to German Spanish French Italian Portuguese Japanese Korean Chinese

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Separation theorem - The value of an investment to an individual is not dependent on consumption preferences. All investors will want to accept or reject the same investment projects by using the N.P.V. rule, regardless of personal preference.