Hi, this is my first post. I'm an aspiring quant and finished my first blog post (part 1): https://smabie.github.io/posts/2019/10/04/vol.html I was motivated to write this post by what I felt was unsound advice cautioning individuals from investing in leveraged index ETFs. I'm currently working on part 2 and am looking for some feedback. The general idea is that we can take modify the volatility drag equation (r_final = r - var/2) to incorporate leverage. After that we can take the derivative with respect to the leverage ratio to find the maximum return given a forecasted return and variance. In short, the ideal leverage ratio assuming a normal distribution is returns/variance. I've looked for papers talking about this but can't find anything. I'm an amateur (I work as a quantitative developer, not a real quant), so I'm sure this is a known result. Anyone who could review the post and give me feedback and maybe links to papers covering this topic would be greatly appreciated. Thanks!