Why is the separation principle still valid in a world with (a) Nonmarketable assets? (b) A nonstochastic

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Why is the separation principle still valid in a world with
(a) Nonmarketable assets?
(b) A nonstochastic risk-free rate?

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Financial Theory and Corporate Policy

ISBN: 978-0321127211

4th edition

Authors: Thomas E. Copeland, J. Fred Weston, Kuldeep Shastri

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Question Posted: Apr 26, 2016 08:25 AM

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Why is the separation principle still valid in a world with (a) Nonmarketable assets? (b) A nonstochastic

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a Given that some assets are nonmarketable the equilibrium pricing equation is given by Mayers 1972 ...View the full answer

Financial Theory and Corporate Policy

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