Generally, increases in leverage result in ________ return and ________ risk.
A) decreased; increased
B) decreased; decreased
C) increased; increased
D) increased; decreased

Question

Quizplus · Accepted Answer

Increases in leverage generally result in increased return due to the potential for higher earnings from investments made with borrowed funds, but also increased risk because the cost of borrowing can amplify losses.

Generally, Increases in Leverage Result in ________ Return and ________

Generally, Increases in Leverage Result in Return and