What is the Fisher separation theorem about?
Investment decisions
Tax laws
Wage determination
Trade tariffs
Answer
The Fisher separation theorem states that investment decisions should be made independently of financing decisions. This means that the choice of investments should be based solely on their expected return and risk, without regard to how they will be financed. Similarly, the choice of financing should be based solely on its cost and availability, without regard to the investments that will be made.
Irving Fisher Trivia: 31 Questions to Test Your Memory
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