Define leverage and explain the meaning of procyclical leverage. Intuitively explain how investment banks can obtain this

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Define leverage and explain the meaning of procyclical leverage. Intuitively explain how investment banks can obtain this type of leverage.

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Define leverage and explain the meaning of procyclical leverage. Intuitively explain how investment banks can obtain this

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Leverage refers to the use of borrowed funds or debt to finance investments or operations with the goal of potentially increasing the return on invest... View the full answer

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