An Investor Can Create the Effect of Leverage on His/her

question 64

Multiple Choice

An investor can create the effect of leverage on his/her account by:
i.buying equity of an unlevered firm; II) investing in risk-free debt like T-bills; III) borrowing on his/her own account

• A)I only
• B)II only
• C)III only
• D)I and III only

---

Definitions:

Speech

The verbal means of communicating or expressing thoughts, feelings, or ideas using articulated sounds or words.

Metacognition

The recognition and comprehension of an individual's cognitive processes, commonly known as "metacognition."

Interpersonal Intelligence

A type of intelligence that involves the ability to understand and interact effectively with others.

Contextual Intelligence

The ability to understand and appropriately apply knowledge taking into account the situational context, including cultural and environmental factors.