You Purchase a Stock with Cash, and You Earn a Negative

question 58

Multiple Choice

You purchase a stock with cash, and you earn a negative return on the stock. If you had purchased the stock with 60 percent cash and 40 percent borrowed funds, your return on your investment would have been

• A)positive.
• B)more negative than if you had covered the entire investment with cash.
• C)negative, but more favorable than if you had covered the entire investment with cash.
• D)zero.

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Definitions:

Threat

A perceived danger or risk, posing a potential harm or negative outcome to someone or something.

Second-hand Smoke

Smoke that is not directly inhaled from a burning tobacco product but is breathed in from the environment, posing health risks to nonsmokers.

Exposed

Being in a state where something is uncovered or revealed, potentially subject to harm or criticism.

Effect

The result or outcome of a particular influence, action, or causal relationship.