Leveraged portfolio

(redirected from Levered Portfolios)

Leveraged portfolio

A portfolio that includes risky assets purchased with funds borrowed.

Leveraged Portfolio

A portfolio that includes at least some securities that were bought with borrowed money. A leveraged portfolio is risky because the securities may result in a loss, which would leave the investor liable to repay the borrowed capital. However, if the securities result in a gain, the investor has essentially made a profit without using his/her own money.
References in periodicals archive ?
*, **,*** denotes statistical significance at the 10%, 5%, and 1% level of significance and t-statistics arc in parentheses The HML factor showed a statistically significant negative relationship with the levered portfolios, which is validated also at the full sample level.
The value factor has a stable negative relationship with the returns of the levered portfolios, indicating that investors penalize low-value and high-levered companies by requiring higher returns.
The findings for the eight levered portfolios are not different from those of the four portfolio analysis and arc not presented here due to space considerations.
(4.) Furthermore, all empirical tests were also performed with value weighted levered portfolios. The results showed the same magnitude and sign in the regression coefficients and only minor differences in statistical significance.