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In finance, leverage is a general term for any technique to multiply gains and losses.Common ways to attain leverage are borrowing money, buying fixed assets and using derivatives
Leverage is a scientific word which means that taking mechanical advantage. The concept of leverage is basically used in financial markets when the investor's are having an option to borrow and lend at riskfree rate and that amount can be futhur reinvested into some companies stocks.Models such as Capital Assest Pricing Model are based on this concept of Riskfree borrowing and lending. Also in efficient frontier u can find the concept of leverage.

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