Borrow to Leverage


o Set up A Line of Credit with A Bank.
o Use Investment Portfolio as Collateral for Borrowing.
o One or more interest rates can be used.(such as a long-term and a short-term rate.)
o Invest the Borrowed Capital to Expand the Portfolio.
o Portfolio Return is Increased.
o Portfolio Risk is also Increased.
o Portfolio Return to Risk Ratio may Actually be Better.
o Return on Portfolio Can be Greater than the Highest Return Investment.

o Specify Which Investments are to be Treated as Capital Borrowing Rates.
o Borrowing can be at a Fixed Rate or select a Return and Standard Deviation.
o Set Maximum and Minimum Borrowing Levels if Desired.
o Optimizer Treats Borrowed Capital as a Negative Allocation.
o Sum of Borrowed Capital From Multiple Sources can be Controlled.
o All Borrowed Capital is used to Increase the Asset Allocation.
o Optimal Amount to be Borrowed is Determined Concurrently with Asset Allocation.