Which Statement Is True Ex Ante

question 8

Multiple Choice

Which statement is true ex ante?

• A) Leverage normally increases the owner's income return (cash yield) if you pay market value for the property.
• B) Leverage normally increases the owner's income return (cash yield) if you pay more than market value for the property.
• C) Leverage normally increases the owner's total return (including appreciation) if you pay market value for the property.
• D) Leverage normally increases the owner's total return (including appreciation) if you pay more than market value for the property.

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Definitions:

Latissimus Dorsi

A large, flat muscle on the back that helps control the movement of the shoulder.

Epicranius

A muscle of the scalp consisting of the frontalis and occipitalis muscles which are connected by the epicranial aponeurosis.

Moveable Bone

A moveable bone refers to any bone in the body that is capable of movement or articulation at a joint with another bone.

Fixator

A muscle that stabilizes the origin of another muscle to enable effective movement.