Episode 259: Comprehensive Overview: Estimating Expected Returns
The Rational Reminder Podcast
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The Role of Leverage in Long Term Portfolio Decisions
Conventional wisdom is that stocks are less volatile at longer investment horizons on a per year basis. This result is based on historical estimates of volatility, which what we argue in this paper is that investors making portfolio decisions should be looking into the future. We take the perspective of a forward-looking investor rather than a backward-looking historian, if you will.
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