mutual fund theorem


A theory which asserts that an investor should hold a combination of risky and non-risky assets or cash, both at an equal proportion. This theory eventually results in a mutual fund holding a series of risky assets.

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You should try and figure out a way to make the mutual fund theorem earn even more for your portfolio.

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The mutual fund theorem was mentioned during the meeting on how to best diversity our portfolio with the upcoming project.

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Using the mutual fund theorem, I was able to properly discard enough risky assets as to allow both sound and risky assets to be in equal numbers.

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