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if you leverage your risk for a higher return you _also_ increase your risk
by anythingdude321 6y ago
if you leverage your risk for a higher return you _also_ increase your risk
- fractionalhare 6y agoYes, but you can choose how much risk to take on using your leverage weight. You don't have to accept the baseline risk of the inherently riskier asset. It's easier to start with a less risky portfolio and weight it accordingly than it is to derisk a portfolio which is intrinsically riskier.