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Sity - Yale School of Management Barry J. Nalebuff Yale University - Yale School of Management Electronic copy available at: http://ssrn.com/abstract 1687272 Diversification Across Time Ian Ayres* & Barry Nalebuff** By employing leverage to gain more exposure to stocks when young, individuals can achieve better diversification across time. Using stock data going back to 1871, we show that early leverage combined with reduced equity exposure when older can reduce lifetime portfolio risk. For e.

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