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

Bogleheads On Investing Podcast

CHAPTER

The Importance of Model Portfolios

Bill Sharp: The argument for indexing, I mean, it's so self-evident. One is less risk, more risk. And in the theory, you can do that by borrowing a lending. But those are very strong assumptions. There's one market portfolio levered up or down. People don't just take one market portfolio and lever it up orDown. They tend to shade a bias towards less risky,. fongs for bias towards more risky, et cetera.

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