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Explain how we can reach to the two following criteria using the Fisher's Separation Theorem: 1. A single investment criterion, NPV, is enough for management

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Explain how we can reach to the two following criteria using the Fisher's Separation Theorem: 1. A single investment criterion, NPV, is enough for management if shareholder wealth maximization is the goal. (4p) 2. All investors (hence the society) will be better off if they also can trade their preferences on capital markets.(3.5p)

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