The smaller the fraction of an investment financed by borrowing
A) the greater the potential return and potential loss on that investment.
B) the smaller the potential return and potential loss on that investment.
C) the greater the potential return and the smaller the potential loss on that investment.
D) the smaller the potential return and the greater the potential loss on that investment.
Answer: B
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Which of the arguments Staples and Office Depot made in defense of their proposed merger would be least defensible on economic grounds?
A) There would be substantial economies of scale. B) The two firms were in competition with all other office supply stores, not just office supply superstores. C) The history of low pricing by the two stores meant that they would not raise prices in the future after they merged. D) Entry into the office supply market is relatively easy.
The utility function captures
A) how consumers interact. B) how an individual consumer ranks consumption bundles. C) how output is produced from labor and capital inputs. D) how happy a consumer is about a given consumption bundle.
It is more profitable for a firm to be_______ than ________
a. In perfect competition; monopolists b. A monopolists; in perfect competition c. Not in business; in business d. All of the above
A dress manufactured in Hagen, Germany, costs 195 euros. What is the U.S. dollar value of the same dress if the exchange rate is $0.89 per euro?
a. $173.55 b. $165.43 c. $219.10 d. $187.61 e. $195.00