The Graphical Probability Distribution of ROE for a Firm That

question 36

True/False

The graphical probability distribution of ROE for a firm that uses financial leverage would tend to be more peaked than the distribution if the firm used no leverage, other things held constant.

---

Definitions:

De-Individuation

The loss of self-awareness and individual accountability in groups, often leading to uncharacteristic behavior.

Antisocial Attitudes

A set of beliefs or attitudes that are hostile, harmful, or against societal norms, and can lead to antisocial behavior.

Normative Topics

Subjects or issues that are related to prescribing norms or standards of behavior considered to be acceptable within a society or group.

Rule-Breaking Topics

Subjects or matters that involve challenging or violating societal or established norms.