The Graphical Probability Distribution of ROE for a Firm That

question 69

True/False

The graphical probability distribution of ROE for a firm that uses financial leverage would tend to be more peaked than the distribution if the firm used no leverage, other things held constant.

---

Definitions:

Depressant

Depressant describes substances that reduce arousal and stimulation in the body, often prescribed to relieve anxiety, tension, and sleep disorders.

Mental Activity

Any cognitive operation or process by which an individual becomes aware of or perceives ideas, thoughts, and feelings.

Physical Activity

Any bodily movement produced by skeletal muscles that requires energy expenditure, contributing to overall health.

Hypnotized

Being hypnotized refers to a trance-like state of focused attention and heightened suggestibility, usually induced by a hypnotist.