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:

Public Nuisance

An act or omission that obstructs, damages, or inconveniences the rights of the community or public.

Unreasonable Manner

Acting or behaving in a way that is not sensible, fair, or rational, often leading to negative consequences or judgments.

Deadly Force

The use of force that is likely to cause, or intended to cause, death or serious bodily harm.

Defense Of Property

Defense of property is a legal doctrine that justifies the use of reasonable force to protect one's property from theft or damage.