1) Theoretically, when does it make sense to use leverage? 2) Historically, has it made sense to use leverage? 3) For the same level of risk, is it better to be “100% in Stocks” OR “Add leverage to a Balanced Portfolio”? 4) How much can you borrow without worrying about a margin call? Appendix 1: Risk and return metrics for “100% Stock” and “60% Stock / 40% Bond” Portfolios The InvestQuest View We do see value in borrowing to invest, particularly if one is invested in a diversified multi-asset portfolio. This is especially so in recent years, where borrowing costs are at record low levels. Based on historical data, it appears that investors can borrow up to 27%*** of their gross portfolio value and be relatively assured that a margin call is unlikely, with the caveat that the margin rates are not reduced significantly during market downturns....