Which of the following is the use of debt to increase an investment position?
A)Behavioral finance
B)Financial leverage
C)Probability
D)Stock market bubble

Question

Quizplus · Accepted Answer

The use of debt to increase an investment position is known as financial leverage. This involves borrowing money to invest, with the aim of earning returns that exceed the cost of borrowing. While financial leverage can amplify gains, it also exposes the investor to greater risk, as losses can also be magnified.

Which of the Following Is the Use of Debt to Increase