Leverage, ROE, and ROI - Margin Trading and Businesses
- Author
- Zerodha Varsity
- Published
- Tue 11 Feb 2025
- Episode Link
- https://side-notes-by-zerodha-varsity.simplecast.com/episodes/ep-35-leverage-roe-and-roi-margin-trading-and-businesses-EQD4Y8Ga
Borrowings can amplify your profits as well as losses. The profits earned on borrowed money add to earnings, but losses eat into the equity capital. Interest payments can further hurt equity. It seems like a risk-return dilemma!
