... box discusses some of this evidence Costs and Benefits of Passive Investing How reasonable is it for an investor to pursue a passive strategy? We cannot answer such a question definitively without ... comprehensive analysis of the relative success of passive strategies in Chapter To summarize, a passive strategy involves investment in two passive portfolios: virtually risk-free short-term T-bills (or a ... top-down approach, starting with asset allocation across a small set of broad asset classes, such as stocks, bonds, and money market securities Then we show how the principles of optimal asset allocation...