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Keeping it Simple | Ep. 52: Passive Aggressive—Another One Cites the Bust

Keeping it Simple with Simplify Asset Management

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Rethinking Market Efficiency and Risk

This chapter explores the limitations of traditional financial models like those of Sharpe and Markowitz, advocating for a broader understanding of risk that includes investor behavior and preferences. It highlights the complexities of passive investing, including potential overvaluation and systemic risks associated with mass sell orders. The discussion emphasizes the importance of adapting investment frameworks to better reflect real-world market dynamics and the implications for shareholder value.

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