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    What is homemade leverage?

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    What is homemade leverage?

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    © BrainMass Inc. brainmass.com June 3, 2020, 10:09 pm ad1c9bdddf
    https://brainmass.com/business/finance/what-is-homemade-leverage-218053

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    Homemade leverage flows from the MM Proposition I which states that the value of levered firm is the same as unlevered firm. The reason is that investors can themselves create leverage by borrowing personally and duplicate the ...

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    The solution explains the concept of homemade leverage in about 156 words.

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