Static versus constant leverage

(a) A position is levered 3× and the stock falls 25% over six months. Compute the equity drawdown with static leverage and with continuously rebalanced constant leverage, the latter with $\sigma = 25\%$ and zero financing cost. (b) For a stock with expected return 13% funded at 10% and $\sigma = 25\%$, what is the growth-optimal leverage? What leverage would give the same growth rate as holding cash?