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