Bernoullis Theorem: A statement of the conservation of energy for a steady, nonviscous, incompressible level flow. It is an inverse relationship in which pressures are least where velocities are greatest. Theorized by Daniel Bernoulli (1700-1782), a Swiss mathematician and physicist.

 

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Bernoullis Theorem: A statement of the conservation of energy for a steady, nonviscous, incompressible level flow. It is an inverse relationship in which pressures are least where velocities are greatest. Theor . . . View Full Definition

Separation Theorem: Theory that the value of an investment to an individual is not dependent on consumption preferences. That is, investors will want to accept or reject the same investment projects by using th . . . View Full Definition

Spot Futures Parity Theorem: Exchange rate on currency for immediate delivery. Related: Forward exchange rate.

Two-Fund Separation Theorem: Black's zero-beta version of the capital asset pricing model.

Portfolio Separation Theorem: Theory that an investor's choice of a risky investment portfolio is separate from his attitude towards risk. Related: Fisher's separation theorem.

Nyquists Theorem: This states that a sound must be sampled at at least twice its highest analog frequency in order to extract all of the information from the bandwidth and accurately represent the original ac . . . View Full Definition

Fishers Separation Theorem: A theory that nominal interest rates in two or more countries should be equal to the required real rate of return to investors plus compensation for the expected amount of inflation in each country.

Interest Rate Parity Theorem: Expression that the interest rate differential between two countries is equal to the difference between the forward foreign exchange rate and the spot rate.

Mutual Fund Theorem: A result associated with the CAPM, asserting that investors will choose to invest their entire risky portfolio in a market index or mutual fund.