When Investors Use Leverage in Their Own Portfolios to Adjust

question 44

Multiple Choice

When investors use leverage in their own portfolios to adjust the leverage choice made by the firm, it is referred to as ________.

• A) outside debt
• B) retained earnings
• C) homemade leverage
• D) payout ratio

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Definitions:

Fact-Finder

An unbiased party or an individual who examines all sides of an issue to determine the facts in a dispute before a decision is made.

Labor Dispute

A disagreement between employees and employers related to employment conditions, compensation, rights, or union activities.

Settlement Recommendations

Advised solutions or agreements proposed to resolve disputes, often within a legal or formal conflict resolution process.

Arbitration

A dispute resolution process where an impartial third party makes a decision to settle a dispute outside of court.