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The "two fund theorem" is the establishment of two efficient Funds or Portfolios with the
purpose that any efficient fund or portfolio can copied or duplicated (in terms of mean and any
variance overall combined) to the other fund or portfolio so that the profit or benefits could be
doubled for the investors.
The importance of creating such "Theorem" is that the investors invest in the portfolio in
combination in both the portfolios or funds to have gain. The both the funds in combination
provides the complete portfolio services to the investors.
Solution
The "two fund theorem" is the establishment of two efficient Funds or Portfolios with the
purpose that any efficient fund or portfolio can copied or duplicated (in terms of mean and any
variance overall combined) to the other fund or portfolio so that the profit or benefits could be
doubled for the investors.
The importance of creating such "Theorem" is that the investors invest in the portfolio in
combination in both the portfolios or funds to have gain. The both the funds in combination
provides the complete portfolio services to the investors.

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The two fund theorem is the establishment of two efficient Funds.pdf

  • 1. The "two fund theorem" is the establishment of two efficient Funds or Portfolios with the purpose that any efficient fund or portfolio can copied or duplicated (in terms of mean and any variance overall combined) to the other fund or portfolio so that the profit or benefits could be doubled for the investors. The importance of creating such "Theorem" is that the investors invest in the portfolio in combination in both the portfolios or funds to have gain. The both the funds in combination provides the complete portfolio services to the investors. Solution The "two fund theorem" is the establishment of two efficient Funds or Portfolios with the purpose that any efficient fund or portfolio can copied or duplicated (in terms of mean and any variance overall combined) to the other fund or portfolio so that the profit or benefits could be doubled for the investors. The importance of creating such "Theorem" is that the investors invest in the portfolio in combination in both the portfolios or funds to have gain. The both the funds in combination provides the complete portfolio services to the investors.