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Leverage reflects the risk taken by a borrower. A borrower makes monthly payment for a primary mortgage and a second mortgage of a property, with
Leverage reflects the risk taken by a borrower. A borrower makes monthly payment for a primary mortgage and a second mortgage of a property, with the loan-to-value ratio equal to 70% and 20%, respectively. What is the proper leverage ratio that could reflect the total risk taken by the borrower? (choose the closest answer)
1.25
1.8
10
3.3
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