When Investors Use Leverage in Their Own Portfolios to Adjust

question 63

Multiple Choice

When investors use leverage in their own portfolios to adjust the leverage choice made by the firm,we say that they are using ________.

• A) homemade leverage
• B) operating leverage
• C) financial leverage
• D) total leverage

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Definitions:

Terman Intelligence Test/Education Edition

A standardized test designed to measure human intelligence and cognitive abilities, adapted for educational settings by Lewis Terman.

Intelligence Quotient

A score that takes into account a student’s mental and chronological age.

Mental Age

Mental age refers to a measure of an individual's cognitive ability compared to the average cognitive ability of a person at a specific age.

Chronological Age

The amount of time that has elapsed since an individual's birth, typically measured in years, months, and days.