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Read the following quotation attributed to Warren Buffett and compare it with the effect of leverage as implied by the course materials studied thus far.

Read the following quotation attributed to Warren Buffett and compare it with the effect of leverage as implied by the course materials studied thus far. Is Warren Buffett's simile appropriate under the assumptions we made so far? Why or why not?

"Having a large amount of leverage is like driving a car with a dagger on the steering wheel pointed at your heart. If you do that, you will be a better driver. There will be fewer accidents but when they happen, they will be fatal"

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