Why Do We Use Leverage If It Increases the Risk

question 63

Essay

Why do we use leverage if it increases the risk of a firm?

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Definitions:

Gray Matter

The darker tissue of the brain and spinal cord, consisting mainly of nerve cell bodies and branching dendrites, involved in muscle control and sensory perception.

Lithium

A chemical element used as a medication to treat and prevent episodes of mania in people with bipolar disorder.

Bipolar Disorder

A mental health condition characterized by extreme mood swings, including episodes of mania and depression.

Brain-Derived Neurotrophic Factor (BDNF)

A protein in the brain and nervous system that plays a critical role in neuron survival, development, function, and plasticity.