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Question 799  LVR, leverage, accounting ratio

In the home loan market, the acronym LVR stands for Loan to Valuation Ratio. If you bought a house worth one million dollars, partly funded by an $800,000 home loan, then your LVR was 80%. The LVR is equivalent to which of the following ratios?



Question 1054  leverage, LVR

An asset price suddenly increased by 10%. Multiplication by which of the following leverage ratios will give the proportional increase in equity or net wealth?

Over a short time period the equity capital return will equal the asset capital return multiplied by the: