Generally, increases in leverage result in increased return and risk, whereas decreases in leverage result in decreased return and risk.

Name: Generally, increases in leverage result in increased return and risk, whereas decreases in leverage result in decreased return and risk.
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Quizplus · Accepted Answer

This is generally true, as increasing leverage amplifies both gains and losses, leading to higher returns and risk. However, reducing leverage can lead to lower returns and risk as it reduces the potential gains and losses.

Generally, Increases in Leverage Result in Increased Return and Risk