Provide a definition of homemade leverage.

Homemade Leverage

A strategy where investors adjust the leverage in their own investment portfolio, rather than relying on the leverage employed by the companies in which they own shares.

Gain an understanding of the principle of homemade leverage and its consequences for individual investors in practice.

Verified Answer

Rahela SinanagicJul 15, 2024

Final Answer :

The use of personal borrowing to change the overall amount of financial leverage to which the individual is exposed.

Learning Objectives

Gain an understanding of the principle of homemade leverage and its consequences for individual investors in practice.

Provide a definition of homemade leverage.

Definitions

Learning Objectives

Learning Objectives

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