Study Center in Managerial Working Paper Economics & Finance On Leasing, Borrowing and Financial Risk Haim Levy and Marshall August 1979 Sarnat * Professor of Finance, The Hebrew University, Jerusalem; and Visiting Professor, University of Pennsylvania ** Professor of Finance, The Hebrew University, Jersualem; and Visiting Professor, University of California at Los Angeles. The authors acknowledge the helpful comments of T. Ophir and Z. Lerman.