The Separation Theorem Says That

question 31

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:

Conchae

Curved bones in the nasal cavity that help to filter, warm, and moisten the air before it enters the lungs.

Tracheotomy

A surgically made opening in the trachea through which a person will breathe.

Intubation

The insertion of a tube into a patient's airway to maintain an open airway or administer certain drugs.

Conchae

Curved shelves of bone located inside the nasal cavity that increase its surface area for the purpose of warming, moisturizing, and filtering the air breathed in through the nose.