Mutual fund theorem 


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Mutual fund theoremA result associated with the CAPM, asserting that investors will choose to invest their entire risky portfolio in a marketindex or mutual fund.Mutual fund theorem Similar MatchesRybczynski TheoremRybczynski TheoremThe property of the HeckscherOhlin 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 theoremTwo fund separation theoremThe theoretical result that all investors will hold a combination of the riskfree asset and the market portfolio. Coase TheoremCoase TheoremThe 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). HeckscherOhlin TheoremHeckscherOhlin TheoremThe proposition of the HeckscherOhlin Model that countries will export the goods that use relatively intensively their relatively abundant factors. Central Limit TheoremCentral Limit TheoremThe 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 SuggestionsGains from trade theoremFirst theorem of welfare economics Separation theorem Spot futures parity theorem HeckscherOhlinVanek Theorem StolperSamuelson Theorem Interest rate parity theorem Lerner Symmetry Theorem KempWan Theorem Second theorem of welfare economics Factor Price Equalization Theorem 
