Which Statement Is Not Correct About Financial Leverage for a $300,000

question 31

Multiple Choice

Which statement is not correct about financial leverage for a $300,000 investment versus a $100,000 investment?

• A)The probability of success is the same under both investment options.
• B)The payout will be 3 times higher or 3 times lower with the larger investment.
• C)The probability of success is the 3 times greater with the larger investment.
• D)The larger investment increases the return on equity but also faces a greater potential for loss.

---

Definitions:

Sexism

Discrimination against members of either sex but primarily affecting women.

Social Audit

A formal review of a company's endeavors, structures, and procedures to evaluate its impact on social, ethical, and environmental issues.

Social Issues

Problems that affect many individuals within a society, relating to matters such as inequality, poverty, and environmental degradation.