The Separation Theorem Says That

question 21

Multiple Choice

The separation theorem says that

• A) expected return of a portfolio is separate from its variance. investment decisions can be made separately from consumption decisions.
• B) lending decisions can be made jointly with borrowing decisions.
• C) systematic risk and unsystematic risk should be considered separately.
• D) variance of a portfolio is separate from its covariance.

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Definitions:

Basic Human Needs

Fundamental physiological and psychological needs that are common to all humans, such as the need for food, water, shelter, and safety.

Holism

The theory or belief that all the properties of a system (biological, chemical, social, economic, mental, linguistic, etc.) cannot be fully understood without examining the system as a whole.

Diabetes Control

The management of diabetes through lifestyle changes, monitoring blood sugar levels, and possibly medication, to maintain blood glucose at normal or near-normal levels.

Client's Diabetes

Refers to the management and treatment strategies for an individual diagnosed with diabetes, typically involving medication, diet, and lifestyle adjustments.