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.

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Definitions:

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The respiratory organs in cats, consisting of two lobes on the left and three on the right, responsible for gas exchange.

Human Lungs

A pair of respiratory organs located in the thorax, responsible for gas exchange between the air and the blood.

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Opinion Moulders are individuals or entities that influence public perception or attitudes towards particular ideas, products, or decisions.

Decision Makers

Individuals or groups responsible for making choices that will impact themselves or others in a business or organizational context.