Investing Borrowed Funds in a Stock Portfolio Will

question 50

Multiple Choice

Investing borrowed funds in a stock portfolio will:

• A) increase the beta of the portfolio.
• B) decrease the volatility of the portfolio.
• C) decrease the expected return on the portfolio.
• D) increase the market risk premium.

---

Definitions:

Texture Gradients

A depth cue in which the density and detail of texture change with distance, helping the observer to perceive spatial relationships.

Depth Cue

Are visual or auditory indications that provide information on the relative distance of objects from an observer, aiding in perception of depth.

Interposition

A visual signal that an object is closer than the ones behind it because it obstructs their view.

Half-Moon Contours

Shapes or outlines that resemble the crescent form of the moon at either its first or last quarter phase.