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A beginnner's question on optimal leverage ratio
In the book Quantitative Trading Strategies, Lars Kestner mentioned that the optimal leverage for a trading strategy is equal to the mean of return divided by the variance of return. This seems to be a result of Harry Markowitz's modern portfolio theory. Can anyone help me understand the concept and derivation behind this equation? And how is the optimal leverage ratio related to Kelly's criteria and Vince's optimal f?Thanks