A passive investment strategy disregards security analysis, targeting instead the risk-free asset and a broad portfolio of risky assets such as the S&P 500 stock portfolio. If in 2021 investors took the mean historical return and standard deviation of the S&P 500 as proxies for its expected return and standard deviation, then the values of outstanding assets would imply a degree of risk aversion of about A = 3.12 for the average investor. This is in line with other studies, which estimate typical risk aversion in the range of 2.0 through 4.0. p-936