Suppose an investment pays off $800 or $1,600 per $1,000 invested with equal probability. Suppose you have $1,000 in savings and can take a loan for an additional $4,000 to invest. What is the maximum leverage ratio you could have and still have enough to repay the loan in the event the bad outcome occurred?

The bad outcome pays off $__________ per $1,000 invested, so you lose $______________per $1,000 invested. The maximum leverage ratio you could have is___________.