Bogleheads On Investing Podcast cover image

Episode 059: Dr. William F. Sharpe, host Jon Luskin

Bogleheads On Investing Podcast

CHAPTER

The Capital Asset Pricing Model

In 1990, you jointly received the Nobel Memorial Prize in economics for your work on the capital asset pricing model. The idea is that the more securities you have in a portfolio, the less important is the risk that's specific to a given stock. As you diversify more, the risk in your portfolio becomes predominantly due to what's going on in the broader market.

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