When Investors Use Leverage in Their Own Portfolios to Adjust

question 71

Multiple Choice

When investors use leverage in their own portfolios to adjust the leverage choice made by the firm,it is referred to as

• A) payout ratio.
• B) retained earnings.
• C) homemade leverage.
• D) outside debt.

---

Definitions:

Little Albert

An experiment in classical conditioning where a child was conditioned to fear a white rat, demonstrating how fears can be acquired through conditioning.

Instincts

Innate, typically fixed patterns of behavior in animals in response to certain stimuli.

Extinction

The process in which a previously learned behavior diminishes or disappears as a result of the discontinuation of reinforcement or the removal of a stimulus.

Reflex

An automatic, involuntary response to a specific stimulus, typically serving as a protective mechanism.