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:

Courtship Disorder Theory

A theory of sexual offending advanced by Kurt Freund that postulates that sexual offending occurs when a person’s sexual behaviour becomes fixated at one of the four phases of human sexual interactions: (1) looking for and appraising a potential partner; (2) posturing and displaying oneself to the partner; (3) tactile interaction with the partner; and (4) sexual intercourse. Fixation at stage 1 results in voyeurism; at stage 2 in exhibitionism; at stage 3 in frotteurism; and at stage 4 in rape.

Sexual Offending

Acts committed by an individual that violate the sexual integrity of another person, often subject to legal prosecution.

Neurodevelopmental Theory

A framework focusing on how the brain and nervous system grow and develop, influencing cognitive functions and behaviors across the lifespan, often used to understand developmental disorders.

Pedophilia

A form of paraphilia that is also a criminal offence, in which a person has recurrent fantasies or behaviours involving sexual activity with prepubescent children.