CFA® Exam Formulas App

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\(R_l=R_p+(R_p-R_d)\times\frac{V_d}{V_e}\)

  • \(R_l\) - leveraged return
  • \(R_p\) - portfolio return
  • \(R_d\) - cost of debt
  • \(V_e\) - proportion of investment financed using equity
  • \(V_d\) - proportion of investment financed using debt