3 ms·

Do you have a link to Felix Salmon pointing out that this demonstrates Modigliani-Miller? Edit: Thanks!

• mbostock 12y ago
  https://twitter.com/felixsalmon/status/469311904582627329 https://twitter.com/felixsalmon/status/469311904582627329
  • arjunnarayan 12y ago
    But it looks like Down Payment doesn't affect the result conditioned on holding the Mortgage Rate constant. I'm not so sure that's a good assumption. I imagine the down payment strongly affects the mortgage rate you'd get.
    • judk 12y ago
      The M-M theorem is one of those pretty void theorems that says "in the absence of all real world factors, two abstsct models are mathematically equivalent structures".