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.

Use mutual fund theorem in a sentence

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


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


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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