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by anythingdude321 2028 days ago
if you leverage your risk for a higher return you _also_ increase your risk
1 comments

Yes, but you can choose how much risk to take on using your leverage weight. You don't have to accept the baseline risk of the inherently riskier asset. It's easier to start with a less risky portfolio and weight it accordingly than it is to derisk a portfolio which is intrinsically riskier.