1. Leveraged return, denoted L, is the return on assets purchased using borrowed money. It is given by the formula L= Y - (1 - D)R D where Y is the return on the asset, R is the cost of borrowed money, and D is the percentage the investor must put down to secure the loan. For our purposes, we may assume that Y and R are constant, and hence that L is a function solely of D. (a) Find lim L. D-+1 (b) What does the result in part (a) mean? (c) Find lim L. D-40 (d) What does the result in part (c) mean? 2. The total box-office receipts, denoted R. for a long-running movie are given by the function 120/2 R(1) 72 4 where R is given in millions of dollars, and f is given in months. What would you expect the movie to gross in the long run? Explain your