Leverage:

A. is synonymous with risk-free investment.
B. increases expected rate of return.
C. leads to smaller changes in the investment's price.
D. reduces risk.


Answer: B

Economics

You might also like to view...

In the following table, the United States has a comparative advantage in producing

Potatoes and Wheat Output (tons per hour)
COUNTRYPOTATOESWHEAT
United States42
Ireland31

Economics

By 1937, when a new recession began in the midst of the Great Depression,

A) GDP had almost recovered to its 1929 level, but unemployment was still above the 1929 level. B) unemployment had almost fallen back to its 1929 level, but GDP had yet to recover to its 1929 level. C) neither GDP nor unemployment had returned to near their 1929 levels. D) both GDP and unemployment had returned to near their 1929 levels.

Economics

Use the following graph to answer the question below. The graph shows that indifference curves are

A. transitive. B. concave. C. objective. D. increasing.

Economics

If the value of the U.S. dollar changes from 1.2 euros to 1.4 euros, we would expect that the United States would experience a ________ in exports and a ________ in imports.

A. rise; rise B. fall; fall C. rise; fall D. fall; rise

Economics