While Operating Leverage Results Only in a Magnification of Returns

question 162

True/False

While operating leverage results only in a magnification of returns, financial leverage results only in a magnification of risk.

---

Definitions:

Parathyroid Hormone

A hormone produced by the parathyroid glands that helps regulate calcium levels in the blood.

Serum

Fluid portion of blood after the removal of fibrin and blood cells.

Muscle Contraction

The shortening and/or development of tension within a muscle, allowing for movement and force generation.

Blood Clotting

The process by which blood changes from a liquid to a gel, forming a clot to stop bleeding.