Carlos Holds a Portfolio of Stocks and Bonds

question 13

Multiple Choice

Carlos holds a portfolio of stocks and bonds. He is planning to buy a real estate property worth $150,000. He can use financial leverage to make this purchase by:

• A) paying $75,000 cash in the first installment and selling shares worth $75,000 from his portfolio to pay the second installment.
• B) taking a personal loan worth $100,000 and selling bonds worth $50,000 from his portfolio.
• C) selling bonds from his portfolio worth $80,000 and writing a check for $70,000.
• D) selling stocks from his portfolio worth $50,000 and paying $100,000 in cash.
• E) paying $150,000 in cash from his savings account.