Alexs simple leverage ratio is

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Reference no: EM131967896

Last year Alex bought a house in Atlanta for $900,000. Suppose that Alex paid $225,000 as a down payment and took out a mortgage loan of $675,000 to cover the remaining amount.

Alex's simple leverage ratio is

Suppose that the price of the house rises by 2%.

If Alex sells his house now, his capital gain will be A 2% rise in the price of the house causes a percentage gain of____in Alex's equity.

Reference no: EM131967896

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